☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 77-0160744 | |||||||
(State or other jurisdiction of
incorporation or organization)
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(IRS Employer
Identification No.)
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3911 Sorrento Valley Boulevard, Suite 110
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San Diego | ||||||||
CA | 92121 | |||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||
Common Stock, par value $.001 per share | LGND | The Nasdaq Global Market | ||||||
Large Accelerated Filer |
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Accelerated Filer
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☐
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Non-accelerated Filer
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Smaller reporting company
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Emerging growth company |
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Part I | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 1B. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Part II | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Item 7. | ||||||||
Item 7A. | ||||||||
Item 8. | ||||||||
Item 9. | ||||||||
Item 9A. | ||||||||
Item 9B. | ||||||||
Part III | ||||||||
Item 10. | ||||||||
Item 11. | ||||||||
Item 12. | ||||||||
Item 13. | ||||||||
Item 14. | ||||||||
Part IV | ||||||||
Item 15. | ||||||||
Item 16. | ||||||||
GLOSSARY OF TERMS AND ABBREVIATIONS | |||||
Abbreviation | Definition | ||||
2019 Notes | $245.0 million aggregate principal amount of convertible senior unsecured notes due 2019 | ||||
2023 Notes | $750.0 million aggregate principal amount of convertible senior unsecured notes due 2023 | ||||
AAALAC | Accreditation of Laboratory Animal Care International | ||||
Ab Initio | Ab Initio Biotherapeutics, Inc. | ||||
Abvivo | Abvivo, LLC | ||||
ACOVA | ACOVA, Inc. | ||||
ADHF | Acute decompensated heart failure | ||||
Aldeyra | Aldeyra Therapeutics, Inc. | ||||
Amended Interest Purchase Agreement | Amended and Restated Interest Purchase Agreement, dated May 31, 2017, between the Company and CorMatrix Cardiovascular, Inc. | ||||
Amgen | Amgen, Inc. | ||||
ANDA | Abbreviated New Drug Application | ||||
API | Active pharmaceutical ingredient | ||||
Aptevo | Aptevo Therapeutics | ||||
Arcus | Arcus Biosciences, Inc. | ||||
ASC | Accounting Standards Codification | ||||
ASCO | American Society of Clinical Oncology | ||||
ASCT | Autologous Stem Cell Transplantation | ||||
ASU | Accounting Standards Update | ||||
Aurobindo | Aurobindo Pharma Ltd | ||||
Aziyo | Aziyo Med, LLC | ||||
Baxter | Baxter International, Inc. | ||||
BeiGene | BeiGene Switzerland GmbH | ||||
BendaRx | BendaRx Corp. | ||||
Bexson Biomedical | Bexson Biomedical, Inc. | ||||
BLA |
Biologics license application
|
||||
CStone | CStone Pharmaceuticals (Suzhou) Co., Ltd. | ||||
CASI | CASI Pharmaceuticals, Inc. | ||||
Cardioxyl | Cardioxyl Pharmaceuticals, Inc. | ||||
CI-AKI | Contrast-induced acute kidney injury | ||||
Code of Conduct | Code of Conduct and Ethics Policy | ||||
Coherus | Coherus Biosciences, Inc. | ||||
CoM | Composition of Matter | ||||
Company | Ligand Pharmaceuticals Incorporated, including subsidiaries | ||||
Convertible Note | Senior Convertible Promissory Note | ||||
COPD | Chronic obstructive pulmonary disease | ||||
Cormatrix | Cormatrix Cardiovascular, Inc. | ||||
Cormatrix Asset Sale | Asset sale from CorMatrix to Aziyo | ||||
Corvus | Corvus Pharmaceuticals, Inc. | ||||
COSO | Committee of Sponsoring Organizations of the Treadway Commission | ||||
CRO | Contract Research Organization | ||||
Crystal | Crystal Bioscience, Inc. | ||||
Cumulus | Cumulus Oncology, Ltd. | ||||
CVR | Contingent value right |
CyDex | CyDex Pharmaceuticals, Inc. | ||||
Daiichi Sankyo | Daiichi Sankyo Company, Ltd. | ||||
Dianomi | Dianomi Therapeutics, Inc. | ||||
DMF | Drug Master File | ||||
ESG | Environmental, Social and Governance | ||||
Eisai | Eisai Inc. | ||||
Eli Lilly | Eli Lilly and Company | ||||
ECM | Extracellular matrix | ||||
EPA | Environmental Protection Agency | ||||
ESPP | Employee Stock Purchase Plan, as amended and restated | ||||
EU | European Union | ||||
Exelixis | Exelixis, Inc. | ||||
FASB | Financial Accounting Standards Board | ||||
FDA | Food and Drug Administration | ||||
FSGS | Focal segmental glomerulosclerosis | ||||
GAAP | Generally accepted accounting principles in the United States | ||||
GBM | Glioblastoma | ||||
Genagon | Genagon Therapeutics AB | ||||
GCSF | Granulocyte-colony stimulating factor | ||||
GigaGen | GigaGen, Inc. | ||||
Gilead | Gilead Sciences, Inc. | ||||
GPCR | G-protein coupled receptor | ||||
GRA | Glucagon receptor antagonist | ||||
HanAll | HanAll Biopharma Co., Ltd. | ||||
Harbour | Harbour BioMed Shanghai Co., Ltd. | ||||
HBV | Hepatitis B Virus | ||||
HCC | Hepatocellular Carcinoma | ||||
Hikma | Hikma Pharmaceuticals PLC | ||||
HNO | Nitroxyl | ||||
Hovione | Hovione FarmCiencia, S.A. | ||||
Icagen | Icagen, Inc. | ||||
IPR&D | In-Process Research and Development | ||||
IRAK4 | Interleukin-1 Receptor Associated Kinase-4 | ||||
IRS | Internal Revenue Service | ||||
IV | Intravenous | ||||
iMBP | iMetabolic Biopharma Corporation | ||||
Immunovant | Immunovant Sciences GmbH | ||||
IND | Investigational New Drug | ||||
Kira Pharma | Kira Pharmaceuticals Ltd. | ||||
KSQ Therapeutics | KSQ Therapeutics, Inc. | ||||
Ligand | Ligand Pharmaceuticals Incorporated, including subsidiaries | ||||
LTP | Liver targeting prodrug | ||||
Lundbeck | Lundbeck A/S | ||||
Marinus | Marinus Pharmaceuticals, Inc. | ||||
MCM | Mineral Coated Microparticle | ||||
Melinta | Melinta Therapeutics, Inc. | ||||
Merck | Merck & Co., Inc. |
Merrimack | Merrimack Pharmaceuticals, Inc. | ||||
Metabasis | Metabasis Therapeutics, Inc. | ||||
Metavant | Metavant Sciences Ltd. | ||||
Millennium | Millennium Pharmaceuticals, Inc. | ||||
MLA | Master License Agreement | ||||
MRSA | Methicillin-resistant Staphylococcus aureu | ||||
NASH | Non-alcoholic steatohepatitis | ||||
NDA | New Drug Application | ||||
NOLs | Net Operating Losses | ||||
Novan | Novan, Inc. | ||||
Novartis | Novartis AG | ||||
Nucorion | Nucorion Pharmaceuticals, Inc. | ||||
OMT | Open Monoclonal Technology, Inc. | ||||
Ono | Ono Pharmaceutical Co., Ltd. | ||||
Opthea | Opthea Limited | ||||
Orange Book | Publication identifying drug products approved by the FDA based on safety and effectiveness | ||||
Original Interest Purchase Agreement | Interest Purchase Agreement, dated May 3, 2016, between the Company and CorMatrix Cardiovascular, Inc. | ||||
Palvella | Palvella Therapeutics, Inc. | ||||
Par | Par Pharmaceutical, Inc. | ||||
Pfenex | Pfenex Inc. | ||||
Pfizer | Pfizer, Inc. | ||||
PFS | Progression-free Survival | ||||
Pharmacopeia | Pharmacopeia, Inc. | ||||
Phoenix Tissue | Phoenix Tissue Repair | ||||
PhoreMost | PhoreMost Limited | ||||
PPD | Post-Partum Depression | ||||
PSU | Performance stock unit | ||||
R&D | Research and Development | ||||
Roivant | Roivant Sciences GMBH | ||||
RSU | Restricted stock unit | ||||
SAGE | Sage Therapeutics, Inc. | ||||
SARM | Selective Androgen Receptor Modulator | ||||
SEC | Securities and Exchange Commission | ||||
Sedor | Sedor Pharmaceuticals, Inc., or RODES, Inc. | ||||
Seelos | Seelos Therapeutics, Inc. | ||||
Selexis | Selexis, SA | ||||
Sermonix | Sermonix Pharmaceuticals, LLC | ||||
SII | Serum Institute of India | ||||
Spectrum | Spectrum Pharmaceuticals, Inc. | ||||
SQ Innovation | SQ Innovation, Inc. | ||||
Sunshine Lake Pharma | Sunshine Lake Pharma Co., Ltd. | ||||
Takeda | Takeda Pharmaceuticals Company Limited | ||||
Talem | Talem Therapeutics LLC | ||||
Taurus | Taurus Biosciences LLC | ||||
Tax Act | The Tax Cuts and Jobs Act | ||||
Teva | Teva Pharmaceuticals USA, Inc., Teva Pharmaceutical Industries Ltd. and Actavis, LLC |
TG Therapeutics | TG Therapeutics, Inc. | ||||
Travere | Travere Inc. | ||||
TR-Beta | Thyroid hormone receptor beta | ||||
Valanbio | Valanbio Therapeutics, Inc. | ||||
VDP | Vernalis Design Platform | ||||
VentiRx | VentiRx Pharmaceuticals, Inc. | ||||
Vernalis | Vernalis plc | ||||
Verona | Verona Pharma plc | ||||
Viking | Viking Therapeutics | ||||
Vireo | Vireo Health | ||||
WuXi | WuXi Biologics Ireland Limited | ||||
WuXi Agreement | The Platform License Agreement, dated March 23, 2015, by and between Ligand and WuXi, as amended | ||||
Xi'an Xintong | Xi'an Xintong Medicine Research | ||||
X-ALD | X-linked adrenoleukodystrophy | ||||
xCella Biosciences | xCella Biosciences, Inc. | ||||
Zydus Cadila | Zydus Cadila Healthcare, Ltd |
Item 1. | Business |
Big Pharma | Ticker | Biotech | Ticker | Biotech, continued | Ticker | ||||||||||||||||||||||||
Abbott | ABT | ABBA | Private | MEI | MEIP | ||||||||||||||||||||||||
AbbVie | ABBV | ABL Bio | 298380 | Melinta | Private | ||||||||||||||||||||||||
AstraZeneca | AZN | Abvivo | Private | Menarini | Private | ||||||||||||||||||||||||
Baxter | BAX | Adept | Private | Meridian Labs | Private | ||||||||||||||||||||||||
Boehringer Ingelheim | Private | Aldeyra | ALDX | Metavant | Private | ||||||||||||||||||||||||
Daiichi Sankyo | DSKY | Amgen | AMGN | Merrimack | MACK | ||||||||||||||||||||||||
Eli Lilly | LLY | Anebulo | Private | Nanjing King-Friend | 603707 | ||||||||||||||||||||||||
Eisai | 4523 | Aptevo | APVO | Neuritek | Private | ||||||||||||||||||||||||
GSK | GSK | Arcellx | Private | Novan | NOVN | ||||||||||||||||||||||||
Janssen | JNJ | Arcus | RCUS | Novogen | NVGN | ||||||||||||||||||||||||
Jazz | JAZZ | Asahi Kasei | 3407 | Nucorion | Private | ||||||||||||||||||||||||
Merck | MRK | Ascella | Private | Oncternal | Private |
Merck KGaA | MRK.DE | BendaRx | Private | OnKure | Private | ||||||||||||||||||||||||
Novartis | NVS | Bexson Biomedical | Private | Opthea | OPT | ||||||||||||||||||||||||
Ono | 4528 | Cantex | Private | Outlook | OTLK | ||||||||||||||||||||||||
Otsuka | 4768 | Corvus | CRVS | Palvella | Private | ||||||||||||||||||||||||
Pfizer | PFE | CR Double-Crane | 600062 | Pandion | PAND | ||||||||||||||||||||||||
Roche | RHHBY | CStone | 2616.HK | Phoenix Tissue | Private | ||||||||||||||||||||||||
Sanofi | SNY | Cumulus | Private | Precision Biologics | Private | ||||||||||||||||||||||||
Takeda | 4502 | Electra | Private | Protagonist | PTGX | ||||||||||||||||||||||||
Teva | TEVA | Elevation | Private | Revision | Private | ||||||||||||||||||||||||
Specialty Pharma | Ticker | Exelixis | EXEL | RubrYc | Private | ||||||||||||||||||||||||
Acrotech (Aurobindo) | AUROPHARMA | Five Prime | FRPX | SAGE | SAGE | ||||||||||||||||||||||||
Aldevron | Private | Foghorn | Private | Seagen | SGEN | ||||||||||||||||||||||||
Aytu Bioscience | AYTU | Genmab | GEN | Seelos | SEEL | ||||||||||||||||||||||||
Aziyo | AZYO | Genagon | Private | Servier | Private | ||||||||||||||||||||||||
Beloteca | Private | Genekey Biotech | Private | Serum Inst. of India | Private | ||||||||||||||||||||||||
CASI | CASI | Genentech (Roche) | RHHBY | Softkemo | Private | ||||||||||||||||||||||||
CorMatrix | Private | Genovac | Private | Sunshine Lake | Private | ||||||||||||||||||||||||
CTI Biopharma | CTIC | GigaGen | Private | Talem | Private | ||||||||||||||||||||||||
Ferring | Private | Gilead Sciences | GILD | Teneobio | Private | ||||||||||||||||||||||||
Gloria | 2437 | Gordian | Private | TG Therapeutics | TGTX | ||||||||||||||||||||||||
Lundbeck | LUN | HanAll | 9420 | Tizona | Private | ||||||||||||||||||||||||
Sedor | Private | Harbour | 2142 | Travere | TVTX | ||||||||||||||||||||||||
Sermonix | Private | IBC Generium | Private | Tremeau | Private | ||||||||||||||||||||||||
SQ Innovation | Private | Ichnos | Private | Unity | UBX | ||||||||||||||||||||||||
Vireo Health | VREOF | iMetabolic | Private | Valanbio | Private | ||||||||||||||||||||||||
Immunovant | IMVT | Vaxxas | Private | ||||||||||||||||||||||||||
Generics | Ticker | Interventional Analgesix | Private | Vega | Private | ||||||||||||||||||||||||
Alvogen | Private | J-Pharma | Private | VenBio | Private | ||||||||||||||||||||||||
Apotex | Private | Jupiter | Private | VentiRx | Private | ||||||||||||||||||||||||
BioCad | Private | Kangchen | Private | Verona | VRNA | ||||||||||||||||||||||||
Gedeon Richter | GEDSF | Kira | Private | Viking | VKTX | ||||||||||||||||||||||||
Hikma | HIK | KSQ | Private | Virtuoso | Private | ||||||||||||||||||||||||
Mylan | VTRS | Marinus | MRNS | Xi'an Xintong | Private | ||||||||||||||||||||||||
Par | Private | WuXi | 603259 | ||||||||||||||||||||||||||
Zydus Cadila | CADILAHC | Zhilkang Hongyi | Private | ||||||||||||||||||||||||||
Approved | ||||||||
Partner Name | Program | Therapeutic Area | ||||||
Acrotech/CASI | Evomela | Cancer |
Alvogen/Adalvo | Teriparatide | Women's Health | ||||||
Alvogen/Hikma/Nanjing King-Friend | Voriconazole | Infectious Disease | ||||||
Amgen/Ono | Kyprolis | Cancer | ||||||
Aytu | Tuzistra | Infectious Disease | ||||||
Aziyo | ECM portfolio | Medical device/Cardiology | ||||||
Baxter | Nexterone | Cardiovascular | ||||||
Biocad | Teberif | Inflammatory/Metabolic | ||||||
Exelixis/Daiichi-Sankyo | Minnebro | Cardiovascular | ||||||
Gilead | Veklury | Infectious Disease | ||||||
Lundbeck | Carnexiv | Central Nervous System | ||||||
Melinta | Baxdela | Infectious Disease | ||||||
Menarini | Frovatriptan | Central Nervous System | ||||||
Merck | Noxafil-IV | Infectious Disease | ||||||
Par | Posaconazole | Infectious Disease | ||||||
Pfizer | Viviant/Conbriza | Inflammatory/Metabolic | ||||||
Pfizer | Duavee | Inflammatory/Metabolic | ||||||
Pfizer | Vfend-IV | Infectious Disease | ||||||
SAGE | Zulresso | Central Nervous System | ||||||
Sedor | Sesquient | Central Nervous System | ||||||
Serum Institute of India | Pneumosil | Infectious Disease | ||||||
Zydus Cadila | Vivitra | Cancer | ||||||
Zydus Cadila | Bryxta/ZyBev | Cancer | ||||||
Zydus Cadila | Exemptia | Inflammatory/Metabolic | ||||||
Zydus Cadila | Vortuxi | Inflammatory/Metabolic | ||||||
Phase 3/Pivotal or Regulatory Submission Stage | ||||||||
Partner Name | Program | Therapeutic Area | ||||||
Various | Teriparatide | Women's Health | ||||||
Aldeyra | Reproxalap | Other/Undisclosed | ||||||
Biocad | BCD-066 | Blood Disorders | ||||||
CStone | Sugemalimab | Cancer | ||||||
Gloria | Zimberelimab | Cancer | ||||||
IBC Generium | GNR-008 | Severe and Rare | ||||||
Jazz | JZP-458 | Cancer | ||||||
Marinus | Ganaxalone IV | Central Nervous System | ||||||
Merck | V114 | Infectious Disease | ||||||
Novan | SB206 | Infectious Disease | ||||||
Novartis | Mekinist (CE-Trametinib) | Cancer | ||||||
Outlook Therapeutics | ONS-5010 | Other/Undisclosed | ||||||
Palvella | PTX-022 | Other/Undisclosed | ||||||
Sage | Zulresso | Infectious disease | ||||||
Sanofi | Sutimlimab | Blood Disorders | ||||||
Sedor | CE-Fosphenytoin | Central Nervous System |
Serum Institute | CRM197 | Infectious Disease | ||||||
Sunshine Lake | Vilazodone | Central Nervous System | ||||||
Takeda | Pevonedistat | Cancer | ||||||
Travere | Sparsentan | Severe and Rare | ||||||
Verona | Ensifentrine (RPL554) | Respiratory Disease | ||||||
Xi'an Xintong | Pradefovir | Infectious Disease | ||||||
Phase 2 | ||||||||
Partner Name | Program | Therapeutic Area | ||||||
Arcus | Zimberelimab | Cancer | ||||||
Cantex | CX-01 | Cancer | ||||||
CTI Biopharma | Tosedostat | Cancer | ||||||
Elevation Oncology | Seribantumab | Cancer | ||||||
Eisai | FYCOMPA | Central Nervous System | ||||||
Genmab | Gen1046 | Cancer | ||||||
Harbour | Batoclimab | Inflammatory/Metabolic | ||||||
Immunovant | Batoclimab | Inflammatory/Metabolic | ||||||
Janssen | Teclistimab | Cancer | ||||||
J-Pharma | JPH-203 | Cancer | ||||||
Merck | M6620 | Cancer | ||||||
Merck | CRM197 | Infectious Disease | ||||||
Novartis | ECF843 | Inflammatory/Metabolic | ||||||
Opthea | OPT-302 | Other/Undisclosed | ||||||
Precision Biologics | NPC-1C | Cancer | ||||||
Seelos | Aplindore | Central Nervous System | ||||||
Sermonix | Lasofoxifene | Cancer | ||||||
VentiRx | Motolimod | Cancer | ||||||
Viking | VK5211 | Inflammatory/Metabolic | ||||||
Viking | VK2809 | Inflammatory/Metabolic | ||||||
Viking | VK0214 | Inflammatory/Metabolic | ||||||
Viking | VK0612 | Inflammatory/Metabolic | ||||||
Phase 1 | ||||||||
Partner Name | Program | Therapeutic Area | ||||||
Amgen | AMG-330 | Cancer | ||||||
Apotex | Meloxicam | Migraine | ||||||
Aptevo | APVO436 | Cancer | ||||||
Exelixis | ROR | Inflammatory/Metabolic | ||||||
Gedeon Richter | Bevacizumab | Cancer | ||||||
Genmab | Gen1046 | Cancer | ||||||
Janssen | JNJ-67371244 | Cancer | ||||||
Janssen | JNJ-70218902 | Cancer | ||||||
Jupiter Bioscience | Viright | Cancer |
MEI Pharma | ME-344 | Cancer | ||||||
Merck | M6233 | Cancer | ||||||
Novartis | MIK-665 | Cancer | ||||||
Novartis | BCL-201 | Cancer | ||||||
Phoenix Tissue | PTR-01 | Other/Undisclosed | ||||||
Protagonist Therapeutics | PTG300 | Hematology | ||||||
Revision Therapeutics | Rev0100 | Ophthalmology | ||||||
Servier | S55746/S64315 | Cancer | ||||||
Symphogen/Servier | SYM022/SYM023/SYM024/SYM025 | Cancer | ||||||
Takeda | TAK-020 | Inflammatory/Metabolic | ||||||
Takeda | TAK-925 | Severe and Rare | ||||||
Takeda | TAK-243 | Cancer | ||||||
Vaxxas | Nanopatch | Infectious Disease | ||||||
VentiRx Pharma | VTX-1463 | Cancer | ||||||
Xi'an Xintong | MB07133 | Cancer |
Kyprolis is also approved in multiple countries outside the U.S. and Amgen continues to invest significantly in Kyprolis to further expand its label and geography. Amgen’s obligation to pay royalties does not expire until four years after the expiration of the last-to-expire patent covering Captisol. Our patents and applications relating to the Captisol component of Kyprolis are not expected to expire until 2033.
|
Kyprolis (Amgen) | |||||||||||||
< $250 million | 1.5% | |||||||||||||
$250 to $500 million | 2.0% | |||||||||||||
$500 to $750 million | 2.5% | |||||||||||||
>$750 million | 3.0% |
Our partner, Viking, is developing VK2809, a novel selective TR-Beta agonist with potential in multiple indications, including hypercholesterolemia, dyslipidemia and NASH. VK2809 is currently in a Phase 2b clinical trial (the VOYAGE study) in patients with biopsy-confirmed NASH. Viking has previously announced positive results from a Phase 2a trial of VK2809 in hypercholesterolemia and fatty liver disease. VK0214 is currently in Phase 1 clinical development, and had been granted orphan drug study by the FDA for the treatment of X-ALD. Under the terms of the agreement with Viking, we may be entitled to up to $375 million of development, regulatory and commercial milestones and tiered royalties on potential future sales. Our TR Beta programs partnered with Viking are subject to CVR sharing and a portion of the cash received will be paid out to CVR holders.
|
TR-Beta - VK2809 and VK0214 (Viking)
|
|||||||
< $500 million | 3.5% | |||||||
$500 to $750 million | 5.5% | |||||||
>$750 million | 7.5% |
We acquired the economic rights to PTX-022 from Palvella in December 2018. PTX-022 is a novel, topical formulation comprising high-strength rapamycin in development to treat pachyonychia congenita (PC). PC is a serious, chronically debilitating lifelong monogenic rare skin disease with no approved treatment. Palvella announced top line results of the Phase 2/3 VALOR study in late 2020. The Phase 3 portion of the study missed the primary endpoint, but significant improvement in the primary endpoint was achieved in the open-label, Phase 2 portion. Palvella plans to share the results with the FDA in the first quarter of 2021.
|
PTX - 022 (Palvella) | |||||||
< $50 million | 5.00% | |||||||
$50 to $100 million | 7.50% | |||||||
>$100 million | 9.80% | |||||||
Ligand Licenses With Tiered Royalties | ||||||||
Program | Licensee | Royalty Rate | ||||||
CE-Meloxicam | Sedor | 8.0% - 10.0% | ||||||
Ciforadenant | Corvus | Mid-single digit to low-teen royalty | ||||||
DGAT-1 | Viking | 3.0% - 7.0% | ||||||
Duavee | Pfizer | 0.5% - 2.5% | ||||||
Ensifentrine (RPL554) | Verona | Low to mid-single digit royalty | ||||||
FBPase Inhibitor (VK0612) | Viking | 7.5% - 9.5% | ||||||
Kyprolis | Amgen | 1.5% - 3.0% | ||||||
Lasofoxifene | Sermonix | 6.0% - 10.0% | ||||||
Mineral Coated Microparticle | Dianomi | 2.0% - 3.0% | ||||||
OmniAb-Genagon | Genagon | 4.0% - 6.0% | ||||||
OmniAb-GigaGen | GigaGen | Mid-single digit royalty | ||||||
OmniAb-iMetabolic | iMetabolic | <6% | ||||||
OmniAb-Kira | Kira | Low to mid-single digit royalty | ||||||
OmniAb-Takeda | Takeda | Low single digit royalty | ||||||
Oral EPO | Viking | 4.5% - 8.5% | ||||||
PTX-022 | Palvella | 5.0% - 9.8% | ||||||
SARM (VK5211) | Viking | 7.25% - 9.25% | ||||||
SB206 | Novan | 7.0% - 10.0% | ||||||
TR Beta (VK2809 and VK0214) | Viking | 3.5% - 7.5% | ||||||
Viviant/Conbriza | Pfizer | 0.5% - 2.5% | ||||||
Various | Nucorion | 4.0% - 9.0% | ||||||
Various | Seelos | 4.0% - 10.0% |
Ligand Licenses With Fixed Royalties | ||||||||
Program | Licensee | Royalty Rate | ||||||
4-1BB | Zhilkang Hongyi | Low single digit royalty | ||||||
AB122 | Arcus | Low single digit royalty | ||||||
Baxdela | Melinta | 2.5% | ||||||
CE-Fosphenytoin | Sedor | 11% | ||||||
Sugemalimab | CStone | 3% | ||||||
Evomela | Acrotech/CASI | 20% | ||||||
V114 | Merck | Low single digit royalty | ||||||
Pneumosil | Serum Institute | Low single digit royalty | ||||||
MB07133 | Xi'an Xintong | 6% | ||||||
ME-344 | MEI Pharma | Low single digit royalty | ||||||
OmniAb-KSQ Therapeutics | KSQ Therapeutics | Single digit royalty | ||||||
PCSK-9 | Genekey | Low single digit royalty | ||||||
Pradefovir | Xi'an Xintong | 9% | ||||||
Reproxalap | Aldeyra Therapeutics | Low single digit royalty | ||||||
Sparsentan | Travere | 9% | ||||||
Various | Gloria | Low single digit royalty | ||||||
Zulresso | SAGE | 3% |
Technology* | Stage* | Partner* | |||||||||||||||||||||
OmniAb | > $800,000 | Preclinical | > $25,000 | Viking | $1,500,000 | ||||||||||||||||||
Icagen | >$750,000 | Clinical | > $600,000 | Roche | $543,000 | ||||||||||||||||||
PET | >$500,000 | Regulatory | > $2,100,000 | Janssen | $355,000 | ||||||||||||||||||
Vernalis | > $350,000 | Commercial | > $1,800,000 | Merck | $296,000 | ||||||||||||||||||
Captisol | > $150,000 | Other | > $75,000 | Neuritek | $246,000 | ||||||||||||||||||
LTP/Hep Direct | > $250,000 | Total | >$4,600,000 | Jazz | $170,000 | ||||||||||||||||||
NCE/Other | > $1,800,000 | Seelos | $139,000 | ||||||||||||||||||||
Total | >$4,600,000 | Travere | $70,000 | ||||||||||||||||||||
Other | >$1,281,000 | ||||||||||||||||||||||
Total | >$4,600,000 |
Program | Development Stage | Targeted Indication or Disease | ||||||||||||
CE-Iohexol | Phase 2 | Diagnostics | ||||||||||||
Luminespib/Hsp90 Inhibitor | Phase 2 | Oncology | ||||||||||||
CE-Sertraline, Oral Concentrate | Phase 1 | Depression | ||||||||||||
PF530 Interferon Beta | Phase 1 | Immunomodulatory | ||||||||||||
PF582 Ranibizumab | Phase 1 | Ocular | ||||||||||||
CCR1 Antagonist | Preclinical | Oncology | ||||||||||||
CE-Busulfan | Preclinical | Oncology | ||||||||||||
CE-Cetirizine Injection | Preclinical | Allergy | ||||||||||||
CE-Silymarin for Topical formulation | Preclinical | Sun damage | ||||||||||||
FLT3 Kinase Inhibitors | Preclinical | Oncology | ||||||||||||
GCSF Receptor Agonist | Preclinical | Blood disorders | ||||||||||||
Anti-B7-H3 | Preclinical | Oncology | ||||||||||||
Anti-TIM3 | Preclinical | Oncology | ||||||||||||
Anti-TIGIT | Preclinical | Oncology | ||||||||||||
Anti-CD38 | Preclinical | Oncology | ||||||||||||
Anti-BDNF | Preclinical | Oncology | ||||||||||||
PF529 Pegfilgrastim | Preclinical | Oncology | ||||||||||||
PF810 Recombinant Peptide | Preclinical | Endocrine System |
Kyprolis | |||||||||||||||||
United States | Corresponding Foreign | ||||||||||||||||
Type of Protection | U.S. Patent No. | U.S. Expiration Date | Jurisdiction | Patent Number | Expiration Date‡ |
CoM | 7,232,818 | 4/14/2025 | EU | 1,745,064 | 4/14/2025 | ||||||||||||
EU | 1,781,688 | 8/8/2025 | |||||||||||||||
EU | 2,266,999 | 8/8/2025 | |||||||||||||||
EU | 2,270,026 | 8/8/2025 | |||||||||||||||
EU | 3,101,026 | 8/8/2025 | |||||||||||||||
Japan | 4,743,720 | 8/8/2025 | |||||||||||||||
Japan | 5,394,423 | 4/14/2025 | |||||||||||||||
CoM | 7,417,042 | 7/20/2026 | EU | 1,781,688 | 8/8/2025 | ||||||||||||
EU | 2,266,999 | 8/8/2025 | |||||||||||||||
EU | 2,270,026 | 8/8/2025 | |||||||||||||||
EU | 3,101,026 | 8/8/2025 | |||||||||||||||
Japan | 4,743,720 | 8/8/2025 | |||||||||||||||
Japan | 5,394,423 | 4/14/2025 | |||||||||||||||
Use | 7,491,704 | 4/14/2025 | EU | 1,745,064 | 4/14/2025 | ||||||||||||
EU | 1,781,688 | 8/8/2025 | |||||||||||||||
EU | 2,266,999 | 8/8/2025 | |||||||||||||||
EU | 2,270,026 | 8/8/2025 | |||||||||||||||
EU | 3,101,026 | 8/8/2025 | |||||||||||||||
Japan | 4,743,720 | 8/8/2025 | |||||||||||||||
Japan | 5,394,423 | 4/14/2025 | |||||||||||||||
CoM | 7,737,112 | 12/7/2027 | EU | 1,819,353 | 12/7/2025 | ||||||||||||
EU | 2,260,835 | 12/7/2025 | |||||||||||||||
EU | 2,261,236 | 12/7/2025 | |||||||||||||||
Japan | 4,990,155 | 12/7/2025 | |||||||||||||||
Japan | 5,108,509 | 5/9/2025 | |||||||||||||||
Use | 8,129,346 | 4/14/2025 | EU | 1,745,064 | 4/14/2025 | ||||||||||||
Japan | 5,394,423 | 4/14/2025 | |||||||||||||||
Japan | 5,616,569 | 4/14/2025 | |||||||||||||||
CoM | 8,207,125 | 4/14/2025 | EU | 1,781,688 | 8/8/2025 | ||||||||||||
EU | 1,745,064 | 4/14/2025 | |||||||||||||||
Japan | 5,394,423 | 4/14/2025 | |||||||||||||||
Japan | 5,616,569 | 4/14/2025 | |||||||||||||||
Japan | 4,743,720 | 8/8/2025 | |||||||||||||||
CoM / Use | 8,207,126 | 4/14/2025 | EU | 1,745,064 | 4/14/2025 | ||||||||||||
Japan | 5,394,423 | 4/14/2025 | |||||||||||||||
Japan | 5,616,569 | 4/14/2025 | |||||||||||||||
Use | 8,207,127 | 4/14/2025 | EU | 1,745,064 | 4/14/2025 | ||||||||||||
Japan | 5,394,423 | 4/14/2025 | |||||||||||||||
Japan | 5,616,569 | 4/14/2025 | |||||||||||||||
CoM / Use | 8,207,297 | 4/14/2025 | EU | 1,745,064 | 4/14/2025 | ||||||||||||
Japan | 5,394,423 | 4/14/2025 | |||||||||||||||
Japan | 5,616,569 | 4/14/2025 | |||||||||||||||
CoM | 9,493,582 | 2/27/2033 | Japan | 6,517,725 | 2/27/2033 | ||||||||||||
Use | 9,511,109 | 10/21/2029 | EU | 2,796,134 | 10/21/2029 | ||||||||||||
Japan | 5,675,629 | 10/21/2029 | |||||||||||||||
Japan | 6,081,964 | 10/21/2029 | |||||||||||||||
Japan | 6,714,664 | 10/21/2029 |
Captisol | |||||||||||||||||
United States | Corresponding Foreign | ||||||||||||||||
Type of Protection | U.S. Patent No. | U.S. Expiration Date | Jurisdiction | Patent Number | Expiration Date‡ | ||||||||||||
CoM | 8,114,438 | 10/26/2025 | EU | 2,708,225 | 4/22/2025 | ||||||||||||
Japan | 6,141,906 | 4/22/2025 | |||||||||||||||
Japan | 6,538,739 | 4/22/2025 | |||||||||||||||
CoM | 10,117,940 | 4/22/2025 | EU | 2,708,225 | 4/22/2025 | ||||||||||||
Japan | 6,141,906 | 4/22/2025 | |||||||||||||||
Japan | 6,538,739 | 4/22/2025 | |||||||||||||||
CoM | 10,668,160 | 12/19/2026 | EU | 2,708,225 | 4/22/2025 | ||||||||||||
Japan | 6,141,906 | 4/22/2025 | |||||||||||||||
Japan | 6,538,739 | 4/22/2025 | |||||||||||||||
CoM | 7,629,331 | 10/26/2025 | EU | 1,945,228 | 10/26/2025 | ||||||||||||
EU | 2,335,707 | 10/26/2025 | |||||||||||||||
EU | 2,581,078 | 10/26/2025 | |||||||||||||||
Japan | 5,465,432 | 10/26/2026 | |||||||||||||||
Use | 8,049,003 | 12/19/2026 | EU | 2,583,668 | 10/26/2025 | ||||||||||||
CoM | 8,846,901 | 10/26/2025 | EU | 1,945,228 | 10/26/2025 | ||||||||||||
EU | 2,335,707 | 10/26/2025 | |||||||||||||||
EU | 2,581,078 | 10/26/2025 | |||||||||||||||
Japan | 5,465,432 | 10/26/2026 | |||||||||||||||
CoM | 8,829,182 | 10/26/2025 | EU | 1,945,228 | 10/26/2025 | ||||||||||||
EU | 2,335,707 | 10/26/2025 | |||||||||||||||
EU | 2,581,078 | 10/26/2025 | |||||||||||||||
EU | 2,952,197 | 10/26/2025 | |||||||||||||||
Japan | 5,465,432 | 10/26/2026 | |||||||||||||||
CoM/Use/MoM | 9,617,352 | 6/8/2026 | EU | 2,583,668 | 10/26/2025 | ||||||||||||
EU | 1,945,228 | 10/26/2025 | |||||||||||||||
EU | 2,335,707 | 10/26/2025 | |||||||||||||||
EU | 2,581,078 | 10/26/2025 | |||||||||||||||
EU | 2,952,197 | 10/26/2025 | |||||||||||||||
Japan | 5,465,432 | 10/26/2026 | |||||||||||||||
CoM/MoM | 10,202,468 | 10/26/2025 | EU | 2,583,668 | 10/26/2025 | ||||||||||||
EU | 1,945,228 | 10/26/2025 | |||||||||||||||
EU | 2,335,707 | 10/26/2025 | |||||||||||||||
EU | 2,581,078 | 10/26/2025 | |||||||||||||||
EU | 2,952,197 | 10/26/2025 | |||||||||||||||
Japan | 5,465,432 | 10/26/2026 |
CoM | 10,703,826 | 10/26/2025 | EU | 2,583,668 | 10/26/2025 | ||||||||||||
EU | 1,945,228 | 10/26/2025 | |||||||||||||||
EU | 2,335,707 | 10/26/2025 | |||||||||||||||
EU | 2,581,078 | 10/26/2025 | |||||||||||||||
Japan | 5,465,432 | 10/26/2026 | |||||||||||||||
CoM / Use | 7,635,773 | 3/13/2029 | Japan | 4,923,144 | 4/28/2029 | ||||||||||||
Japan | 6,039,721 | 4/28/2029 | |||||||||||||||
Japan | 6,276,828 | 4/28/2029 | |||||||||||||||
Japan | 6,444,548 | 4/28/2029 | |||||||||||||||
CoM | 8,410,077 | 3/13/2029 | Japan | 4,923,144 | 4/28/2029 | ||||||||||||
Japan | 6,039,721 | 4/28/2029 | |||||||||||||||
Japan | 6,276,828 | 4/28/2029 | |||||||||||||||
Japan | 6,444,548 | 4/28/2029 | |||||||||||||||
CoM | 9,200,088 | 3/13/2029 | Japan | 4,923,144 | 4/28/2029 | ||||||||||||
Japan | 6,039,721 | 4/28/2029 | |||||||||||||||
Japan | 6,276,828 | 4/28/2029 | |||||||||||||||
Japan | 6,444,548 | 4/28/2029 | |||||||||||||||
CoM | 9,750,822 | 3/13/2029 | Japan | 4,923,144 | 4/28/2029 | ||||||||||||
Japan | 6,039,721 | 4/28/2029 | |||||||||||||||
Japan | 6,276,828 | 4/28/2029 | |||||||||||||||
Japan | 6,444,548 | 4/28/2029 | |||||||||||||||
CoM | 10,117,951 | 3/13/2029 | Japan | 4,923,144 | 4/28/2029 | ||||||||||||
Japan | 6,039,721 | 4/28/2029 | |||||||||||||||
Japan | 6,276,828 | 4/28/2029 | |||||||||||||||
Japan | 6,444,548 | 4/28/2029 | |||||||||||||||
CoM | 10,780,177 | 3/13/2029 | Japan | 4,923,144 | 4/28/2029 | ||||||||||||
Japan | 6,039,721 | 4/28/2029 | |||||||||||||||
Japan | 6,276,828 | 4/28/2029 | |||||||||||||||
Japan | 6,444,548 | 4/28/2029 | |||||||||||||||
MoM | 9,751,957 | 6/28/2033 | EU | 2,814,849 | 2/14/2033 | ||||||||||||
Japan | 6,508,944 | 2/14/2033 | |||||||||||||||
MoM | 10,633,462 | 2/14/2033 | EU | 2,814,849 | 2/14/2033 | ||||||||||||
Japan | 6,508,944 | 2/14/2033 | |||||||||||||||
CoM | 9,493,582 | 2/27/2033 | Japan | 6,517,725 | 2/27/2033 | ||||||||||||
MoM | 10,323,103 | 2/27/2033 | Japan | 6,517,725 | 2/27/2033 | ||||||||||||
CoM/MoM | 10,040,872 | 2/27/2033 | Japan | 6,557,144 | 10/21/2033 | ||||||||||||
MoM | 10,800,861 | 2/27/2033 | Japan | 6,557,144 | 10/21/2033 | ||||||||||||
OmniAb in OmniMouse and OmniRat | |||||||||||||||||
United States | Corresponding Foreign | ||||||||||||||||
Type of Protection | U.S. Patent No. | U.S. Expiration Date | Jurisdiction | Patent Number | Expiration Date‡ | ||||||||||||
CoM | 8,703,485 | 10/10/2031 | EU | 2,152,880 | 5/30/2028 | ||||||||||||
EU | 2,336,329 | 5/30/2028 | |||||||||||||||
EU | 2,603,323 | 5/30/2028 | |||||||||||||||
Japan | 5,823,690 | 5/30/2028 | |||||||||||||||
Japan | 6,220,827 | 5/30/2028 | |||||||||||||||
CoM | 9,388,233 | 5/30/2028 | EU | 2,152,880 | 5/30/2028 | ||||||||||||
EU | 2,336,329 | 5/30/2028 | |||||||||||||||
EU | 2,602,323 | 5/30/2028 | |||||||||||||||
Japan | 5,823,690 | 5/30/2028 | |||||||||||||||
Japan | 6,220,827 | 5/30/2028 | |||||||||||||||
CoM | 10,072,069 | 5/30/2028 | EU | 2,152,880 | 5/30/2028 | ||||||||||||
EU | 2,336,329 | 5/30/2028 | |||||||||||||||
EU | 2,602,323 | 5/30/2028 | |||||||||||||||
Japan | 5,823,690 | 5/30/2028 | |||||||||||||||
Japan | 6,220,827 | 5/30/2028 | |||||||||||||||
Use/MoM | 8,907,157 | 5/30/2028 | N/A | ||||||||||||||
CoM/Use | 9,475,859 | 4/15/2034 | EU | 2,931,030 | 12/13/2033 | ||||||||||||
Japan | 6,705,650 | 12/13/2033 | |||||||||||||||
CoM | 10,385,132 | 1/8/2034 | EU | 2,931,030 | 12/13/2033 | ||||||||||||
Japan | 6,705,650 | 12/13/2033 |
OmniAb in OmniChicken | |||||||||||||||||
United States | Corresponding Foreign | ||||||||||||||||
Type of Protection | U.S. Patent No. | U.S. Expiration Date | Jurisdiction | Patent Number | Expiration Date‡ | ||||||||||||
CoM/Use | 8,030,095 | 12/23/2029 | Europe | 2,271,657 | 3/2/2029 | ||||||||||||
Japan | 5,737,707 | 3/2/2029 | |||||||||||||||
MoM | 8,415,173 | 3/2/2029 | Europe | 2,271,657 | 3/2/2029 | ||||||||||||
Japan | 5,737,707 | 3/2/2029 | |||||||||||||||
CoM | 8,592,644 | 8/30/2030 | Japan | 5,756,802 | 8/11/2030 | ||||||||||||
CoM | 9,404,125 | 12/29/2030 | Japan | 5,756,802 | 8/11/2030 | ||||||||||||
Use | 9,549,538 | 8/11/2030 | Japan | 5,756,802 | 8/11/2030 | ||||||||||||
CoM/Use | 10,010,058 | 8/11/2030 | Japan | 5,756,802 | 8/11/2030 | ||||||||||||
CoM/Use | 10,172,334 | 8/11/2030 | Japan | 5,756,802 | 8/11/2030 | ||||||||||||
CoM/Use | 10,687,519 | 8/11/2030 | Japan | 5,756,802 | 8/11/2030 | ||||||||||||
CoM/Use | 10,362,770 | 8/11/2030 | N/A | 5,756,802 | 8/11/2030 | ||||||||||||
CoM/MoM/Use | 8,865,462 | 5/8/2032 | N/A | ||||||||||||||
CoM | 10,689,433 | 5/23/2032 | N/A | ||||||||||||||
Com/MoM/Use | 9,644,178 | 1/7/2031 | N/A | ||||||||||||||
CoM | 9,380,769 | 5/23/2032 | EU | 2,713,712 | 5/23/2032 | ||||||||||||
CoM | 9,809,642 | 5/23/2032 | N/A | ||||||||||||||
CoM/Use | 9,394,372 | 10/16/2032 | N/A | ||||||||||||||
CoM | 9,982,062 | 10/16/2032 | N/A | ||||||||||||||
CoM/Use | 10,555,508 | 10/16/2032 | N/A |
ITEM 1A. | RISK FACTORS |
Item 1B. | Unresolved Staff Comments |
Item 2. | Properties |
Location |
Approximate
Square Feet |
Operation | Lease Expiration Date | ||||||||
San Diego, CA | 54,000 | Corporate headquarters office and laboratory | March 2024 | ||||||||
Emeryville, CA | 13,000 | Office and laboratory | August 2021 | ||||||||
Durham, NC | 11,200 | Office and laboratory | April 2022 |
Item 3. | Legal Proceedings |
Item 4. | Mine Safety Disclosures |
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities |
Total Number of
Shares Purchased
|
Average Price Paid
Per Share
|
Total Number of
Shares Purchased as
Part of Publicly
Announced Plans or
Programs
|
Maximum Dollar Value of
Shares that May Yet Be
Purchased Under the Program
(in thousands)
|
|||||||||||||||||||||||
October 1 - October 31, 2020 | — | $ | — | — | $ | 253,499 | ||||||||||||||||||||
November 1 - November 30, 2020 | 55,554 | $ | 84.81 | 55,554 | $ | 248,788 | ||||||||||||||||||||
December 1 - December 31, 2020 | — | $ | — | — | $ | 248,788 | ||||||||||||||||||||
Total | 55,554 | $ | 84.81 | 55,554 |
12/31/2015 | 12/31/2016 | 12/31/2017 | 12/31/2018 | 12/31/2019 | 12/31/2020 | |||||||||||||||||||||||||||||||||||||||
Ligand | $ | 100.00 | $ | 93.72 | $ | 126.30 | $ | 125.16 | $ | 96.19 | $ | 91.73 | ||||||||||||||||||||||||||||||||
NASDAQ Composite-Total Return | $ | 100.00 | $ | 108.87 | $ | 141.13 | $ | 137.12 | $ | 187.44 | $ | 271.64 | ||||||||||||||||||||||||||||||||
NASDAQ Biotechnology Index | $ | 100.00 | $ | 78.65 | $ | 95.69 | $ | 87.21 | $ | 109.11 | $ | 137.94 |
Item 6. | Selected Consolidated Financial Data |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
Consolidated Statements of Operations Data: | (in thousands, except per share amounts) | ||||||||||||||||||||||||||||
Royalties | $ | 33,796 | $ | 46,976 | $ | 128,556 | $ | 88,685 | $ | 59,423 | |||||||||||||||||||
Captisol | 109,959 | 31,489 | 29,123 | 22,070 | 22,502 | ||||||||||||||||||||||||
Contract revenue | 42,664 | 41,817 | 93,774 | 30,347 | 27,048 | ||||||||||||||||||||||||
Total revenues | 186,419 | 120,282 | 251,453 | 141,102 | 108,973 | ||||||||||||||||||||||||
Cost of Captisol | 30,419 | 11,347 | 6,337 | 5,366 | 5,571 | ||||||||||||||||||||||||
Amortization of intangibles | 23,442 | 16,864 | 15,792 | 12,120 | 10,643 | ||||||||||||||||||||||||
Research and development | 59,392 | 55,908 | 27,863 | 26,887 | 21,221 | ||||||||||||||||||||||||
General and administrative | 64,435 | 41,884 | 37,734 | 28,653 | 27,653 | ||||||||||||||||||||||||
Total operating costs and expenses | 177,688 | 126,003 | 87,726 | 73,026 | 65,088 | ||||||||||||||||||||||||
Gain from sale of Vernalis R&D | 17,114 | — | — | — | — | ||||||||||||||||||||||||
Gain from sale of Promacta license | — | 812,797 | — | — | — | ||||||||||||||||||||||||
Income from operations | 25,845 | 807,076 | 163,727 | 68,076 | 43,885 | ||||||||||||||||||||||||
Total other income (expense), net | (36,383) | (10,437) | 9,603 | (10,845) | (35,925) | ||||||||||||||||||||||||
Income tax benefit (expense) | 7,553 | (167,337) | (30,009) | (44,675) | (10,327) | ||||||||||||||||||||||||
Income (loss) from continuing operations | (2,985) | 629,302 | 143,321 | 12,556 | (2,367) | ||||||||||||||||||||||||
Discontinued operations | — | — | — | — | 731 | ||||||||||||||||||||||||
Net income (loss) | $ | (2,985) | $ | 629,302 | $ | 143,321 | $ | 12,556 | $ | (1,636) | |||||||||||||||||||
Basic per share amounts: | |||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | (0.18) | $ | 33.13 | $ | 6.77 | $ | 0.60 | $ | (0.11) | |||||||||||||||||||
Discontinued operations | — | — | — | — | 0.04 | ||||||||||||||||||||||||
Net income (loss) | $ | (0.18) | $ | 33.13 | $ | 6.77 | $ | 0.60 | $ | (0.08) | |||||||||||||||||||
Weighted average number of common shares-basic | 16,185 | 18,995 | 21,160 | 21,032 | 20,831 | ||||||||||||||||||||||||
Diluted per share amounts: | |||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | (0.18) | $ | 31.85 | $ | 5.96 | $ | 0.53 | $ | (0.11) | |||||||||||||||||||
Discontinued operations | — | — | — | — | 0.04 | ||||||||||||||||||||||||
Net income (loss) | $ | (0.18) | $ | 31.85 | $ | 5.96 | $ | 0.53 | $ | (0.08) | |||||||||||||||||||
Weighted average number of common shares-diluted | 16,185 | 19,757 | 24,067 | 23,481 | 20,831 |
December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Consolidated Balance Sheet Data: | |||||||||||||||||||||||||||||
Cash, cash equivalents, short-term investments, restricted cash and investments | $ | 411,186 | $ | 1,070,597 | $ | 776,445 | $ | 208,099 | $ | 149,393 | |||||||||||||||||||
Working capital (deficit) | $ | 400,448 | $ | 1,106,643 | $ | 788,291 | $ | (1,847) | $ | (64,076) | |||||||||||||||||||
Total assets | $ | 1,362,285 | $ | 1,494,915 | $ | 1,260,803 | $ | 671,021 | $ | 601,585 | |||||||||||||||||||
Other long-term obligations | $ | 110,356 | $ | 71,722 | $ | 7,776 | $ | 13,506 | $ | 3,603 | |||||||||||||||||||
Total notes payable, net (including current portion) | $ | 442,293 | $ | 638,959 | $ | 636,297 | $ | 224,529 | $ | 212,910 | |||||||||||||||||||
Retained earnings (accumulated deficit) | $ | 391,952 | $ | 400,105 | $ | (229,197) | $ | (400,924) | $ | (431,127) | |||||||||||||||||||
Total stockholders’ equity | $ | 709,525 | $ | 767,232 | $ | 560,914 | $ | 399,788 | $ | 341,290 |
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
(Dollars in thousands) | 2020 | 2019 | Change | % Change | ||||||||||||||||||||||
Royalties | $ | 33,796 | $ | 46,976 | $ | (13,180) | (28) | % | ||||||||||||||||||
Captisol Sales | 109,959 | 31,489 | 78,470 | 249 | % | |||||||||||||||||||||
Contract Revenue | 42,664 | 41,817 | 847 | 2 | % | |||||||||||||||||||||
Total revenue | $ | 186,419 | $ | 120,282 | $ | 66,137 | 55 | % |
(in millions) | 2020 Estimated Partner Product Sales | Effective Royalty Rate | 2020 Royalty Revenue | 2019 Estimated Partner Product Sales | Effective Royalty Rate | 2019 Royalty Revenue | |||||||||||||||||
Kyprolis | $ | 1,094.6 | 2.3% | $ | 25.2 | $ | 1,095.4 | 2.3% | $ | 25.0 | |||||||||||||
Evomela | 32.6 | 20.0% | 6.4 | 26.0 | 20.0% | 5.2 | |||||||||||||||||
Other | 178.5 | 1.2% | 2.2 | 194.1 | 1.3% | 2.6 | |||||||||||||||||
Promacta | N/A | N/A | N/A | 225.1 | 6.3% | 14.2 | |||||||||||||||||
Total | $ | 1,305.7 | $ | 33.8 | $ | 1,540.6 | $ | 47.0 |
(Dollars in thousands) | 2020 | 2019 | Change | % Change | |||||||||||||||||||
Cost of Captisol | $ | 30,419 | $ | 11,347 | $ | 19,072 | 168 | % | |||||||||||||||
Amortization of intangibles | 23,442 | 16,864 | 6,578 | 39 | % | ||||||||||||||||||
Research and development | 59,392 | 55,908 | 3,484 | 6 | % | ||||||||||||||||||
General and administrative | 64,435 | 41,884 | 22,551 | 54 | % | ||||||||||||||||||
Total operating costs and expenses | $ | 177,688 | $ | 126,003 | $ | 51,685 | 41 | % |
(Dollars in thousands) | 2020 | 2019 | Change | % Change | |||||||||||||||||||
Gain (loss) from short-term investments | $ | (16,933) | $ | 1,049 | $ | (17,982) | (1,714) | % | |||||||||||||||
Interest income | 8,078 | 28,430 | (20,352) | (72) | % | ||||||||||||||||||
Interest expense | (27,420) | (35,745) | 8,325 | 23 | % | ||||||||||||||||||
Other expense, net | (108) | (4,171) | 4,063 | 97 | % | ||||||||||||||||||
Total other income (expense,) net | $ | (36,383) | $ | (10,437) | $ | (25,946) | (249) | % |
(Dollars in thousands) | 2020 | 2019 | Change | % Change | |||||||||||||||||||
Income before income tax expense (benefit) | $ | (10,538) | $ | 796,639 | $ | (807,177) | (101) | % | |||||||||||||||
Income tax benefit (expense) | 7,553 | (167,337) | 174,890 | 105 | % | ||||||||||||||||||
Net income (loss) | $ | (2,985) | $ | 629,302 | $ | (632,287) | (100) | % | |||||||||||||||
Effective Tax Rate | 72 | % | 21 | % |
(in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
Net cash provided by (used in): | ||||||||||||||||||||
Operating activities | $ | 54,586 | $ | (29,336) | $ | 194,059 | ||||||||||||||
Investing activities | $ | 231,648 | $ | 466,918 | $ | (423,269) | ||||||||||||||
Financing activities | $ | (310,545) | $ | (485,172) | $ | 328,585 |
Payments Due by Period | |||||||||||||||||||||||||||||
Total | Less than 1 year | 1-3 years | 3-5 years | Thereafter | |||||||||||||||||||||||||
Purchase obligations (1)
|
$ | 63,056 | $ | 36,416 | $ | 26,640 | $ | — | $ | — | |||||||||||||||||||
Notes payable (2)
|
$ | 503,947 | $ | 3,714 | $ | 500,233 | $ | — | $ | — | |||||||||||||||||||
Operating lease obligations (3)
|
$ | 8,659 | $ | 2,259 | $ | 3,895 | $ | 1,805 | $ | 700 | |||||||||||||||||||
Finance lease obligations (4)
|
$ | 6,758 | $ | 6,649 | $ | 105 | $ | 4 | $ | — |
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk |
Item 8. | Consolidated Financial Statements and Supplementary Data |
Page | |||||
Description of the Matter |
Acquisition of Pfenex Inc.
As disclosed in Note 4 to the consolidated financial statements, during 2020, the Company completed the acquisition of Pfenex Inc. for total aggregate consideration of $465.1 million. The transaction was accounted for as a business combination. In connection with the acquisition, the Company recognized identified intangible assets which totaled $385 million and principally consisted of contractual relationships and developed technology, and recognized the Contingent Value Right (CVR) liability for acquisition consideration that is payable based on a predefined regulatory milestone if achieved by December 31, 2021 for which there is a maximum earnout of $77.8 million. The Company determines the fair value of the CVR both as part of the initial purchase price allocation, and on an ongoing basis each reporting period until the CVR is settled. As of December 31, 2020, the liability related to the CVR is $37.6 million.
Auditing the Company’s accounting for its acquisition of Pfenex Inc. was complex due to the significant judgement required by management to determine the fair value of identified intangible assets, and to determine the fair value of the CVR arrangement. The Company used an income approach to measure the value of the contractual relationship and technology-related intangible assets and a discounted cash flow model to value the CVR. Determination of the fair value of the acquired intangible assets was sensitive to the underlying assumptions including the estimated revenue growth rates and timing and the probability of technical and regulatory success. The fair value of CVR was sensitive to the significant underlying assumptions including the probability and timing of achieving the predefined regulatory milestone. These significant assumptions are forward looking and could be affected by future economic and market conditions.
|
|||||||
How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design and tested the operating effectiveness of the controls over the Company’s accounting for acquisitions. For example, we tested controls over management’s review of the valuation of intangible assets acquired and CVR, including the valuation models used and the underlying assumptions used to develop such estimates, and management’s review of the completeness and accuracy of the data used to develop the estimates.
To test the estimated fair value of the intangible assets and CVR, our audit procedures included, among others, evaluating the Company's use of valuation methodologies, evaluating the prospective financial information and testing the completeness and accuracy of underlying data. We compared the significant assumptions to current industry, market and economic trends and historical results of the acquired business. We also involved internal valuation specialists to assist in our evaluation of the valuation methodology and certain significant assumptions used by the Company. Our internal valuation specialists’ procedures included, among others, developing a range of independent estimates for the discount rates and comparing those to the discount rates selected by management.
|
|||||||
Impairment assessment of finite-lived intangibles | ||||||||
Description of the Matter |
At December 31, 2020, the Company’s finite-lived intangible assets totaled $595.3 million. As discussed in Note 1 to the consolidated financial statements, the Company reviews finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the finite-lived intangibles are not expected to be recovered through future undiscounted cash flows. The Company did not identify indicators of impairment for its finite-lived intangibles at December 31, 2020.
Auditing management’s assessment of impairment is challenging due to the high degree of subjective auditor judgment necessary in evaluating management’s identification of indicators of potential impairment and the related assessment of the severity of such indicators in determining whether a triggering event has occurred that requires the Company to evaluate the recoverability of the asset. A high degree of auditor judgment was required to evaluate the significant inputs used in the assessment for potential triggering events which included market conditions, industry and economic trends, changes in regulations, clinical success and historical and forecasted financial results. These possible triggering events could have a significant effect on the Company’s impairment assessment and the determination of whether further quantitative analysis of finite-lived intangible impairment was required.
|
How We Addressed the Matter in Our Audit |
We obtained an understanding of management’s process to identify indicators of impairment, including the qualitative analysis and related inputs and assumptions used in performing the analyses. We evaluated the design and tested the operating effectiveness of the controls that address the identification of indicators of impairment. For example, we tested controls over management’s assessment of indicators of impairment.
To test the Company’s evaluation of indicators of impairment for finite-lived intangibles, our audit procedures included, among others, assessing the methodologies and testing the completeness and accuracy of the Company’s analysis of events or changes in circumstances. As part of our evaluation, we considered market conditions, industry and economic trends, changes in regulations, clinical success and historical and forecasted financial results, in assessing whether an indicator of impairments exists.
|
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Revenues: | |||||||||||||||||
Royalties | $ | 33,796 | $ | 46,976 | $ | 128,556 | |||||||||||
Captisol | 109,959 | 31,489 | 29,123 | ||||||||||||||
Contract revenue | 42,664 | 41,817 | 93,774 | ||||||||||||||
Total revenues | 186,419 | 120,282 | 251,453 | ||||||||||||||
Operating costs and expenses: | |||||||||||||||||
Cost of Captisol
|
30,419 | 11,347 | 6,337 | ||||||||||||||
Amortization of intangibles | 23,442 | 16,864 | 15,792 | ||||||||||||||
Research and development | 59,392 | 55,908 | 27,863 | ||||||||||||||
General and administrative | 64,435 | 41,884 | 37,734 | ||||||||||||||
Total operating costs and expenses | 177,688 | 126,003 | 87,726 | ||||||||||||||
Gain from sale of Vernalis R&D | 17,114 | — | — | ||||||||||||||
Gain from sale of Promacta license | — | 812,797 | — | ||||||||||||||
Income from operations | 25,845 | 807,076 | 163,727 | ||||||||||||||
Other income (expense): | |||||||||||||||||
Gain (loss) from short-term investments | (16,933) | 1,049 | 50,377 | ||||||||||||||
Interest income | 8,078 | 28,430 | 13,999 | ||||||||||||||
Interest expense | (27,420) | (35,745) | (48,276) | ||||||||||||||
Other expense, net | (108) | (4,171) | (6,497) | ||||||||||||||
Total other income (expense), net | (36,383) | (10,437) | 9,603 | ||||||||||||||
Income (loss) before income tax | (10,538) | 796,639 | 173,330 | ||||||||||||||
Income tax benefit (expense) | 7,553 | (167,337) | (30,009) | ||||||||||||||
Net income (loss) | (2,985) | 629,302 | 143,321 | ||||||||||||||
Basic net income (loss) per share | $ | (0.18) | $ | 33.13 | $ | 6.77 | |||||||||||
Shares used in basic per share calculation | 16,185 | 18,995 | 21,160 | ||||||||||||||
Diluted net income (loss) per share | $ | (0.18) | $ | 31.85 | $ | 5.96 | |||||||||||
Shares used in diluted per share calculation | 16,185 | 19,757 | 24,067 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net income (loss) | $ | (2,985) | $ | 629,302 | $ | 143,321 | |||||||||||
Unrealized net gain (loss) on available-for-sale securities, net of tax | (162) | 200 | 73 | ||||||||||||||
Foreign currency translation adjustment | (423) | 608 | (921) | ||||||||||||||
Comprehensive income (loss) | $ | (3,570) | $ | 630,110 | $ | 142,473 |
Common Stock |
Additional
paid-in
capital
|
Accumulated
other
comprehensive
income (loss)
|
Accumulated
deficit
|
Total
stockholders’
equity
|
||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||
Balance at January 1, 2018 | 21,148,665 | $ | 21 | $ | 798,205 | $ | 2,486 | $ | (400,924) | $ | 399,788 | |||||||||||||||||||||||||||
Issuance of common stock under employee stock compensation plans, net | 399,116 | — | 16,417 | — | — | 16,417 | ||||||||||||||||||||||||||||||||
Reclassification of equity component of currently redeemable convertible notes | — | — | 18,859 | — | — | 18,859 | ||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 20,846 | — | — | 20,846 | ||||||||||||||||||||||||||||||||
Repurchase of common stock | (782,248) | — | (127,481) | — | — | (127,481) | ||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 73 | — | 73 | ||||||||||||||||||||||||||||||||
Cumulative-effect adjustment from adoption of ASU 2016-01 | — | — | — | (2,662) | 2,662 | — | ||||||||||||||||||||||||||||||||
Cumulative-effect adjustment from adoption of ASU 2014-09, net of tax | — | — | — | — | 25,581 | 25,581 | ||||||||||||||||||||||||||||||||
Derivative associated with 2019 Notes and Bond Hedge | — | — | (1,559) | — | — | (1,559) | ||||||||||||||||||||||||||||||||
Loss on settlement of 2019 Notes | — | — | 3,187 | — | — | 3,187 | ||||||||||||||||||||||||||||||||
Warrant repurchase in connection with 2019 Notes | — | — | (30,472) | — | — | (30,472) | ||||||||||||||||||||||||||||||||
Loss on repurchase of warrants in connection with 2019 Notes | — | — | 1,792 | — | — | 1,792 | ||||||||||||||||||||||||||||||||
Tax effect on 2019 Notes transactions | — | — | (1,680) | — | — | (1,680) | ||||||||||||||||||||||||||||||||
Derivative associated with 2023 Notes and Bond Hedge | — | — | (1,807) | — | — | (1,807) | ||||||||||||||||||||||||||||||||
Warrant derivative in connection with 2023 Notes | — | — | 97,805 | — | — | 97,805 | ||||||||||||||||||||||||||||||||
Tax effect for 2023 Notes transactions | — | — | (3,181) | — | — | (3,181) | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | (921) | — | (921) | ||||||||||||||||||||||||||||||||
Other tax adjustments | — | — | 183 | — | 163 | 346 | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 143,321 | 143,321 | ||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 20,765,533 | $ | 21 | $ | 791,114 | $ | (1,024) | $ | (229,197) | $ | 560,914 | |||||||||||||||||||||||||||
Issuance of common stock under employee stock compensation plans, net | 179,838 | — | (1,421) | — | — | (1,421) | ||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 24,515 | — | — | 24,515 | ||||||||||||||||||||||||||||||||
Repurchase of common stock | (4,122,133) | (4) | (448,429) | — | — | (448,433) | ||||||||||||||||||||||||||||||||
Unrealized net gain on available-for-sale securities, net of deferred tax | — | — | — | 200 | — | 200 | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | 608 | — | 608 | ||||||||||||||||||||||||||||||||
Other tax adjustments | — | — | 1,547 | — | — | 1,547 | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 629,302 | 629,302 | ||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 16,823,238 | $ | 17 | $ | 367,326 | $ | (216) | $ | 400,105 | $ | 767,232 | |||||||||||||||||||||||||||
Issuance of common stock under employee stock compensation plans, net | 190,672 | — | 1,535 | — | — | 1,535 | ||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 30,727 | — | — | 30,727 | ||||||||||||||||||||||||||||||||
Repurchase of common stock | (934,079) | (1) | (77,997) | — | — | (77,998) | ||||||||||||||||||||||||||||||||
Unrealized net loss on available-for-sale securities, net of deferred tax | — | — | — | (162) | — | (162) | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | (423) | — | (423) | ||||||||||||||||||||||||||||||||
Reacquisition of equity due to 2023 debt extinguishment, net of tax | — | — | (3,236) | — | — | (3,236) | ||||||||||||||||||||||||||||||||
Cumulative-effect adjustment from adoption of ASU 2016-13, net of tax | — | — | — | — | (5,168) | (5,168) | ||||||||||||||||||||||||||||||||
Other tax adjustments | — | — | 3 | — | — | 3 | ||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | (2,985) | (2,985) | ||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 16,079,831 | $ | 16 | $ | 318,358 | $ | (801) | $ | 391,952 | $ | 709,525 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Operating activities | |||||||||||||||||
Net income (loss) | $ | (2,985) | $ | 629,302 | $ | 143,321 | |||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||
Gain from sale of Promacta license | — | (812,797) | — | ||||||||||||||
Gain from sale of Vernalis R&D | (17,114) | — | — | ||||||||||||||
Change in estimated fair value of contingent liabilities | 963 | (30) | 3,448 | ||||||||||||||
Depreciation and amortization of intangible assets | 25,691 | 18,361 | 12,784 | ||||||||||||||
Loss (gain) short-term investments | 16,933 | (1,049) | (50,377) | ||||||||||||||
Amortization/accretion of premium (discount) on investments, net
|
1,479 | (10,274) | (5,452) | ||||||||||||||
Amortization of debt discount and issuance fees | 23,077 | 29,988 | 43,954 | ||||||||||||||
Amortization of commercial license and other economic rights | 2,275 | 25,370 | 1,934 | ||||||||||||||
Share-based compensation | 30,727 | 24,515 | 20,846 | ||||||||||||||
Deferred income taxes, net | (19,053) | 74,829 | 29,739 | ||||||||||||||
Royalties recorded in retained earnings upon adoption of ASC 606 | — | — | 32,707 | ||||||||||||||
Other | 2,657 | (3,498) | 2,931 | ||||||||||||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||||||||||||
Accounts receivable, net | (26,061) | 25,463 | (29,544) | ||||||||||||||
Inventory | (17,799) | (2,061) | (2,559) | ||||||||||||||
Accounts payable and accrued liabilities | (1,245) | (6,664) | (4,533) | ||||||||||||||
Income taxes receivable | 9,144 | (11,219) | 318 | ||||||||||||||
Other economic rights | — | (12,000) | — | ||||||||||||||
Deferred revenue | 29,236 | (1,147) | (1,158) | ||||||||||||||
Other | (3,339) | 3,575 | (4,300) | ||||||||||||||
Net cash provided by (used in) operating activities | 54,586 | (29,336) | 194,059 | ||||||||||||||
Investing activities | |||||||||||||||||
Proceeds from sale of Promacta license | — | 812,797 | — | ||||||||||||||
Purchase of commercial license rights | — | — | (10,000) | ||||||||||||||
Cash paid for acquisition, net of cash and restricted cash acquired
|
(404,884) | (11,840) | (5,856) | ||||||||||||||
Purchases of property and equipment | (4,458) | (2,553) | (887) | ||||||||||||||
Purchases of short-term investments | (422,523) | (2,356,545) | (1,434,255) | ||||||||||||||
Proceeds from commercial license rights | 1,358 | — | — | ||||||||||||||
Proceeds from sale of short-term investments | 394,539 | 535,877 | 131,942 | ||||||||||||||
Proceeds from maturity of short-term investments | 644,155 | 1,494,851 | 892,873 | ||||||||||||||
Proceeds received from repayment of Viking note receivable
|
— | — | 3,914 | ||||||||||||||
Cash paid for equity method investment | (500) | (1,000) | — | ||||||||||||||
Proceeds on sale of Vernalis R&D, net | 22,061 | — | — | ||||||||||||||
Other, net | 1,900 | (4,669) | (1,000) | ||||||||||||||
Net cash provided by (used in) investing activities | 231,648 | 466,918 | (423,269) | ||||||||||||||
Financing activities | |||||||||||||||||
Repayment of debt | (222,209) | (27,323) | (217,674) | ||||||||||||||
Payments under finance lease obligations | (9,549) | — | — | ||||||||||||||
Gross proceeds from issuance of 2023 Convertible Senior Notes | — | — | 750,000 | ||||||||||||||
Payment of debt issuance costs | — | — | (16,900) | ||||||||||||||
Proceeds from issuance of warrants | — | — | 90,000 | ||||||||||||||
Purchase of convertible bond hedge | — | — | (140,250) | ||||||||||||||
Proceeds from bond hedge settlement | — | 12,401 | 439,559 | ||||||||||||||
Payments to convert holders for bond conversion | — | (12,401) | (439,581) |
Net proceeds from stock option exercises and ESPP | 3,017 | 2,997 | 20,183 | ||||||||||||||
Taxes paid related to net share settlement of equity awards
|
(1,481) | (4,418) | (3,765) | ||||||||||||||
Share repurchases | (77,998) | (453,048) | (122,868) | ||||||||||||||
Repurchase of warrants | — | (380) | (30,094) | ||||||||||||||
Payments to CVR Holders | (2,325) | (3,000) | (25) | ||||||||||||||
Net cash provided by (used in) financing activities | (310,545) | (485,172) | 328,585 | ||||||||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | (24,311) | (47,590) | 99,375 | ||||||||||||||
Effect of exchange rate changes on cash | — | 83 | (215) | ||||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | 72,273 | 119,780 | 20,620 | ||||||||||||||
Cash, cash equivalents and restricted cash at end of year | $ | 47,962 | 72,273 | 119,780 | |||||||||||||
Supplemental disclosure of cash flow information | |||||||||||||||||
Cash paid during the year: | |||||||||||||||||
Interest paid | $ | 4,463 | $ | 5,827 | $ | 1,513 | |||||||||||
Taxes paid | $ | 2,130 | $ | 103,817 | $ | 341 | |||||||||||
Restricted cash in other current assets | $ | 343 | $ | 730 | $ | 2,616 | |||||||||||
Supplemental schedule of non-cash investing and financing activities | |||||||||||||||||
Accrued inventory purchases | $ | 1,562 | $ | 170 | $ | 2,059 | |||||||||||
Unrealized (loss) gain on AFS investments | $ | (212) | $ | 256 | $ | 48 | |||||||||||
Purchase of fixed assets recorded in accounts payable | $ | 249 | $ | 495 | $ | 15 |
Year-ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Partner A | 45 | % | 13 | % | 40 | % | |||||||||||
Partner B | 17 | % | 27 | % | 13 | % | |||||||||||
Partner C | < 10% | < 10% | 20 | % |
December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Gross |
Adjustments(1)
|
Net | Gross |
Adjustments(2)
|
Net | |||||||||||||||||||||||||||||||||
Aziyo and CorMatrix | $ | 17,696 | $ | (9,588) | $ | 8,108 | $ | 17,696 | $ | (5,500) | $ | 12,196 | ||||||||||||||||||||||||||
Palvella | 10,000 | (10,000) | — | 10,000 | (7,492) | 2,508 | ||||||||||||||||||||||||||||||||
Selexis and Dianomi | 10,602 | (7,731) | 2,871 | 10,602 | (5,216) | 5,386 | ||||||||||||||||||||||||||||||||
Total | $ | 38,298 | $ | (27,319) | $ | 10,979 | $ | 38,298 | $ | (18,208) | $ | 20,090 |
Year ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Kyprolis | $ | 25,164 | $ | 25,046 | $ | 21,686 | ||||||||||||||
Evomela | 6,377 | 5,171 | 5,658 | |||||||||||||||||
Other | 2,255 | 2,566 | 1,952 | |||||||||||||||||
Promacta | N/A | 14,193 | 99,260 | |||||||||||||||||
$ | 33,796 | $ | 46,976 | $ | 128,556 |
Year ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Captisol | $ | 109,959 | $ | 31,489 | $ | 29,123 | ||||||||||||||
Contract | ||||||||||||||||||||
Service Revenue | 21,803 | 16,776 | 4,749 | |||||||||||||||||
License Fees | 4,378 | 6,199 | 78,195 | |||||||||||||||||
Milestone | 11,516 | 17,173 | 6,577 | |||||||||||||||||
Other | 4,967 | 1,669 | 4,253 | |||||||||||||||||
$ | 42,664 | $ | 41,817 | $ | 93,774 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Weighted average shares outstanding: | 16,185 | 18,995 | 21,160 | ||||||||||||||
Dilutive potential common shares: | |||||||||||||||||
Restricted stock | — | 43 | 72 | ||||||||||||||
Stock options | — | 719 | 1,125 | ||||||||||||||
Warrants associated with 2019 Notes | — | — | 1,017 | ||||||||||||||
2019 Convertible Senior Notes | — | — | 693 | ||||||||||||||
Shares used to compute diluted income (loss) per share | 16,185 | 19,757 | 24,067 | ||||||||||||||
Potentially dilutive shares excluded from calculation due to anti-dilutive effect | 8,458 | 8,926 | 2,845 |
Cash | $ | 51,407 | |||
Restricted cash | 200 | ||||
Accounts and unbilled receivables | 1,359 | ||||
Property and equipment, net | 7,823 | ||||
Right-of-use asset | 3,070 | ||||
Other assets | 1,338 | ||||
Intangibles acquired | 385,000 | ||||
Goodwill(1)
|
90,750 | ||||
Accounts payable | (6,814) | ||||
Accrued liabilities | (7,379) | ||||
Deferred revenue | (3,908) | ||||
Lease liabilities | (3,070) | ||||
Other liabilities | (1,382) | ||||
Deferred tax liabilities, net | (53,296) | ||||
Total consideration | $ | 465,098 |
Approximate
Fair Value |
Estimated useful life
(in years) |
|||||||
Contractual Relationships: | ||||||||
Alvogen | $ | 114,000 | 12 | |||||
Merck | 117,000 | 12 | ||||||
Jazz | 80,000 | 17 | ||||||
SII | 49,000 | 10 | ||||||
Arcellx | 2,000 | 17 | ||||||
Acquired Technologies | 23,000 |
10-19
|
||||||
$ | 385,000 |
Year Ended December 31, | ||||||||
(Unaudited) | 2020 | 2019 | ||||||
Revenue | $ | 189,203 | $ | 170,608 | ||||
Net Income (loss) | $ | (60,059) | $ | 594,941 | ||||
Net income (loss) per common share: | ||||||||
Basic | $ | (3.71) | $ | 31.32 | ||||
Diluted | $ | (3.71) | $ | 30.11 |
Cash | $ | 47 | |||
Intangibles assets with finite-life - core technologies | 5,005 | ||||
$ | 5,052 |
Cash and other assets | $ | 240 | |||
Accrued liabilities | (142) | ||||
Deferred tax liabilities, net | (820) | ||||
Intangibles assets with finite-life - core technology | 7,798 | ||||
$ | 7,076 |
Property and equipment, net | $ | 1,173 | |||
Prepaids and other assets | 588 | ||||
Liabilities assumed | (812) | ||||
Deferred revenue | (3,685) | ||||
Deferred tax assets, net | 861 | ||||
Acquired intangibles | 12,800 | ||||
Goodwill(1)
|
9,015 | ||||
$ | 19,940 |
Cash and other assets | $ | 28 | |||
Accounts payable and accrued liabilities | (83) | ||||
Deferred tax liabilities, net | (146) | ||||
Intangibles assets with finite-life - core technologies | 7,400 | ||||
Goodwill(1)
|
4,812 | ||||
$ | 12,011 |
Cash and cash equivalents | $ | 34,286 | |||
Restricted cash | 2,836 | ||||
Other assets | 6,383 | ||||
Accounts payable and accrued liabilities | (3,479) | ||||
Restructuring and product reserves | (9,241) | ||||
Deferred revenue | (746) | ||||
Intangibles assets with finite-life - core technologies | 7,000 | ||||
Goodwill | 5,939 | ||||
$ | 42,978 |
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||
December 31, 2020 |
Quoted Prices in
Active Markets
for Identical
Assets
|
Significant
Other
Observable
Inputs
|
Significant
Unobservable
Inputs
|
||||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Short-term investments (1)
|
$ | 324,478 | $ | 3,438 | $ | 320,647 | $ | 393 | |||||||||||||||
Investment in Viking common stock | 32,763 | 32,763 | — | — | |||||||||||||||||||
Investment in Viking warrants (2)
|
6,326 | 6,326 | — | — | |||||||||||||||||||
Total assets | $ | 363,567 | $ | 42,527 | $ | 320,647 | $ | 393 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Contingent liabilities - Crystal (3)
|
$ | 800 | $ | — | $ | — | $ | 800 | |||||||||||||||
Contingent liabilities - Cydex
|
508 | — | — | 508 | |||||||||||||||||||
Contingent liabilities - Metabasis (4)
|
3,821 | — | 3,821 | — | |||||||||||||||||||
Contingent liabilities - Icagen (5)
|
6,404 | — | — | 6,404 | |||||||||||||||||||
Contingent liabilities - Pfenex (6)
|
37,600 | — | — | 37,600 | |||||||||||||||||||
Liability for amounts owed to a former licensor
|
60 | 60 | — | — | |||||||||||||||||||
Total liabilities | $ | 49,193 | $ | 60 | $ | 3,821 | $ | 45,312 |
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||
December 31, 2019 |
Quoted Prices in
Active Markets
for Identical
Assets
|
Significant
Other
Observable
Inputs
|
Significant
Unobservable
Inputs
|
||||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Short-term investments (1)
|
$ | 939,989 | $ | 3,073 | $ | 936,791 | $ | 125 | |||||||||||||||
Investment in Viking common stock | 48,425 | 48,425 | — | — | |||||||||||||||||||
Investment in Viking warrants (2)
|
9,910 | 9,910 | — | — | |||||||||||||||||||
Total assets | $ | 998,324 | $ | 61,408 | $ | 936,791 | $ | 125 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Contingent liabilities - Crystal (3)
|
$ | 2,659 | $ | — | $ | — | $ | 2,659 | |||||||||||||||
Contingent liabilities - Cydex | 348 | — | — | 348 | |||||||||||||||||||
Contingent liabilities - Metabasis (4)
|
5,935 | — | 5,935 | — | |||||||||||||||||||
Liability for amounts owed to a former licensor | 75 | 75 | — | — | |||||||||||||||||||
Total liabilities | $ | 9,017 | $ | 75 | $ | 5,935 | $ | 3,007 |
Liabilities | |||||
Fair value of level 3 financial instruments as of December 31, 2019 | $ | 3,007 | |||
Payments to CVR holders and other contingency payments | (2,325) | ||||
Fair value adjustments to contingent liabilities | 2,830 | ||||
Contingent liabilities due to acquisitions | 41,800 | ||||
Fair value of level 3 financial instruments as of December 31, 2020 | $ | 45,312 |
December 31, 2020 | December 31, 2019 | ||||||||||
Assets | |||||||||||
Operating lease assets | $ | 6,892 | $ | 10,353 | |||||||
Finance lease assets | 15,842 | 84 | |||||||||
Total lease assets | $ | 22,734 | $ | 10,437 | |||||||
Liabilities | |||||||||||
Current operating lease liabilities | $ | 1,885 | $ | 1,242 | |||||||
Current finance lease liabilities | 6,593 | 13 | |||||||||
8,478 | 1,255 | ||||||||||
Long-term operating lease liabilities | 5,643 | 9,970 | |||||||||
Long-term finance lease liabilities | 112 | 71 | |||||||||
Total lease liabilities | $ | 14,233 | $ | 11,296 |
Maturity Dates | Operating Leases | Finance Leases | ||||||||||||
2021 | $ | 2,259 | $ | 6,649 | ||||||||||
2022 | 2,129 | 56 | ||||||||||||
2023 | 1,766 | 49 | ||||||||||||
2024 | 1,013 | 4 | ||||||||||||
2025 | 792 | — | ||||||||||||
Thereafter | 700 | — | ||||||||||||
Total lease payments | 8,659 | 6,758 | ||||||||||||
Less imputed interest | (1,131) | (53) | ||||||||||||
Present value of lease liabilities | $ | 7,528 | $ | 6,705 |
December 31, 2020 | December 31, 2019 | ||||||||||
Principal amount of 2023 Notes outstanding | $ | 495,280 | $ | 750,000 | |||||||
Unamortized discount (including unamortized debt issuance cost) | (52,987) | (111,041) | |||||||||
Total long-term portion of notes payable | $ | 442,293 | $ | 638,959 | |||||||
Carrying value of equity component of 2023 Notes | $ | 48,397 | $ | 101,422 | |||||||
Fair value of convertible senior notes outstanding (Level 2) | $ | 466,053 | $ | 647,280 |
Cost |
Gross unrealized
gains
|
Gross unrealized
losses
|
Estimated
fair value
|
||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Short-term investments | |||||||||||||||||||||||
Mutual fund | $ | 151,512 | $ | 386 | $ | — | $ | 151,898 | |||||||||||||||
Bank deposits | 84,120 | 35 | (1) | 84,154 | |||||||||||||||||||
Commercial paper | 45,459 | 27 | (1) | 45,485 | |||||||||||||||||||
Corporate bonds | 30,512 | 99 | (1) | 30,610 | |||||||||||||||||||
Agency bonds | 4,499 | 2 | — | 4,501 | |||||||||||||||||||
Corporate equity securities | 4,466 | 360 | (1,388) | 3,438 | |||||||||||||||||||
Treasury bill | 3,999 | — | — | 3,999 | |||||||||||||||||||
Warrants | — | 393 | — | 393 | |||||||||||||||||||
$ | 324,567 | $ | 1,302 | $ | (1,391) | $ | 324,478 | ||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
Short-term investments | |||||||||||||||||||||||
Bank deposits | $ | 411,690 | $ | 188 | $ | (3) | $ | 411,875 | |||||||||||||||
Corporate bonds | 63,818 | 161 | — | 63,979 | |||||||||||||||||||
Corporate equity securities | 4,506 | 416 | (1,850) | 3,072 | |||||||||||||||||||
Commercial paper | 210,525 | 43 | (16) | 210,552 | |||||||||||||||||||
Warrants | — | 125 | — | 125 | |||||||||||||||||||
Mutual Fund | 250,636 | — | (249) | 250,387 | |||||||||||||||||||
$ | 941,175 | $ | 933 | $ | (2,118) | $ | 939,990 |
December 31, 2020 | |||||||||||
Amortized Cost | Fair Value | ||||||||||
Within one year | $ | 141,732 | $ | 141,793 | |||||||
After one year through five years | 26,856 | 26,956 | |||||||||
After five years | — | — | |||||||||
Total | $ | 168,588 | $ | 168,749 |
Less than 12 months | 12 months or greater | Total | |||||||||||||||||||||||||||||||||
Gross
Unrealized Losses |
Estimated
Fair Value |
Gross
Unrealized Losses |
Estimated
Fair Value |
Gross
Unrealized Losses |
Estimated
Fair Value |
||||||||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||
Bank deposits | $ | (1) | $ | 14,013 | $ | — | $ | — | $ | (1) | $ | 14,013 | |||||||||||||||||||||||
Corporate bonds | (1) | 4,526 | — | — | (1) | 4,526 | |||||||||||||||||||||||||||||
Commercial paper | (1) | 7,693 | — | — | (1) | 7,693 | |||||||||||||||||||||||||||||
Total | $ | (3) | $ | 26,232 | $ | — | $ | — | $ | (3) | $ | 26,232 | |||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||
Bank deposits | $ | (3) | $ | 58,584 | $ | — | $ | — | $ | (3) | $ | 58,584 | |||||||||||||||||||||||
Commercial paper | (16) | 79,362 | — | — | (16) | 79,362 | |||||||||||||||||||||||||||||
Total | $ | (19) | $ | 137,946 | $ | — | $ | — | $ | (19) | $ | 137,946 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Lab and office equipment | $ | 14,666 | $ | 6,307 | |||||||
Leasehold improvements | 3,519 | 2,729 | |||||||||
Computer equipment and software | 1,056 | 999 | |||||||||
19,241 | 10,035 | ||||||||||
Less accumulated depreciation and amortization | (4,807) | (2,850) | |||||||||
$ | 14,434 | $ | 7,185 |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
Indefinite-lived intangible assets | |||||||||||
Goodwill | $ | 189,662 | $ | 95,229 | |||||||
Definite-lived intangible assets | |||||||||||
Complete technology | 277,740 | 242,813 | |||||||||
Less: Accumulated amortization | (63,600) | (50,203) | |||||||||
Trade name | 2,642 | 2,642 | |||||||||
Less: Accumulated amortization | (1,312) | (1,180) | |||||||||
Customer relationships | 40,700 | 29,600 | |||||||||
Less: Accumulated amortization | (15,597) | (13,224) | |||||||||
Contractual relationships | 362,000 | — | |||||||||
Less: Accumulated amortization | (7,243) | — | |||||||||
Total goodwill and other identifiable intangible assets, net | $ | 784,992 | $ | 305,677 | |||||||
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Compensation | $ | 8,810 | $ | 1,986 | |||||||
Professional fees | 977 | 1,135 | |||||||||
Amounts owed to former licensees | 421 | 381 | |||||||||
Royalties owed to third parties | 693 | — | |||||||||
Return reserve | 687 | 3,027 | |||||||||
Acquisition related liabilities | 1,500 | — | |||||||||
Subcontractor | 733 | — | |||||||||
Supplier | 604 | — | |||||||||
Other | 4,105 | 2,052 | |||||||||
$ | 18,530 | $ | 8,581 |
December 31, 2018 | Payments | Fair Value Adjustment | Repurchases | December 31, 2019 | Additional Contingent Liabilities | Payments | Fair Value Adjustment | Repurchases | December 31, 2020 | |||||||||||||||||||||||||||||
Cydex | $ | 514 | $ | (50) | $ | (116) | $ | — | $ | 348 | $ | — | $ | — | $ | 160 | $ | — | $ | 508 | ||||||||||||||||||
Metabasis | 5,551 | — | 904 | (520) | 5,935 | — | — | (1,867) | (247) | 3,821 | ||||||||||||||||||||||||||||
Crystal | 6,477 | (3,000) | (818) | — | 2,659 | — | (1,800) | (59) | — | 800 | ||||||||||||||||||||||||||||
Icagen | — | — | — | — | — | 4,800 | (525) | 2,129 | — | 6,404 | ||||||||||||||||||||||||||||
Pfenex | — | — | — | — | — | 37,000 | — | 600 | — | 37,600 | ||||||||||||||||||||||||||||
Total | $ | 12,542 | $ | (3,050) | $ | (30) | $ | (520) | $ | 8,942 | $ | 41,800 | $ | (2,325) | $ | 963 | $ | (247) | $ | 49,133 |
December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Share-based compensation expense as a component of: | |||||||||||||||||
Research and development expenses | $ | 13,497 | $ | 9,641 | $ | 8,352 | |||||||||||
General and administrative expenses | 17,230 | 14,874 | 12,494 | ||||||||||||||
$ | 30,727 | $ | 24,515 | $ | 20,846 |
Shares |
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Term in
Years
|
Aggregate
Intrinsic
Value
(In thousands)
|
||||||||||||||||||||
Balance at January 1, 2018 | 1,876,332 | $ | 53.17 | 5.77 | $ | 157,340 | |||||||||||||||||
Granted | 228,362 | $ | 162.00 | ||||||||||||||||||||
Exercised | (358,162) | $ | 55.24 | ||||||||||||||||||||
Forfeited | (10,228) | $ | 114.53 | ||||||||||||||||||||
Balance at December 31, 2018 | 1,736,304 | $ | 66.71 | 5.47 | 125,858 | ||||||||||||||||||
Exercisable at December 31, 2018 | 1,313,374 | $ | 47.03 | 4.56 | 117,314 | ||||||||||||||||||
Options vested and expected to vest as of December 31, 2018 | 1,736,304 | $ | 66.71 | 5.47 | $ | 125,858 | |||||||||||||||||
Granted | 338,617 | $ | 116.69 | ||||||||||||||||||||
Exercised | (112,011) | $ | 23.65 | ||||||||||||||||||||
Forfeited | (6,531) | $ | 139.37 | ||||||||||||||||||||
Balance at December 31, 2019 | 1,956,379 | $ | 77.54 | 5.45 | 72,002 | ||||||||||||||||||
Exercisable at December 31, 2019 | 1,454,726 | $ | 61.82 | 4.42 | 70,345 | ||||||||||||||||||
Options vested and expected to vest as of December 31, 2019 | 1,956,379 | $ | 77.54 | 5.45 | $ | 72,002 | |||||||||||||||||
Granted | 806,300 | $ | 92.93 | ||||||||||||||||||||
Exercised | (156,845) | $ | 21.26 | ||||||||||||||||||||
Forfeited | (44,012) | $ | 91.30 | ||||||||||||||||||||
Balance at December 31, 2020 | 2,561,822 | $ | 85.59 | 6.09 | 59,033 | ||||||||||||||||||
Exercisable at December 31, 2020 | 1,611,830 | $ | 76.05 | 4.54 | 53,286 | ||||||||||||||||||
Options vested and expected to vest as of December 31, 2020 | 2,561,822 | $ | 85.59 | 6.09 | $ | 59,033 |
Range of exercise prices |
Options
outstanding
|
Weighted
average
remaining life
in years
|
Weighted average
exercise price
|
Options
exercisable
|
Weighted average
exercise price
|
||||||||||||||||||||||||
$10.05-$14.47
|
284,184 | 0.86 | $ | 13.08 | 270,184 | $ | 13.00 | ||||||||||||||||||||||
$21.92-$56.26
|
344,629 | 2.88 | $ | 35.34 | 344,629 | $ | 35.34 | ||||||||||||||||||||||
$63.58-$74.42
|
307,356 | 5.20 | $ | 71.96 | 220,650 | $ | 73.41 | ||||||||||||||||||||||
$82.90-$95.35
|
185,033 | 6.23 | $ | 86.22 | 140,400 | $ | 86.32 | ||||||||||||||||||||||
$95.68 | 305,106 | 9.12 | $ | 95.68 | 63,059 | $ | 95.68 | ||||||||||||||||||||||
$97.92 | 4,976 | 5.02 | $ | 97.92 | 4,976 | $ | 97.92 | ||||||||||||||||||||||
$98.20 | 270,850 | 9.26 | $ | 98.20 | — | $ | 98.20 | ||||||||||||||||||||||
$100.02-$113.76
|
257,914 | 6.69 | $ | 104.12 | 220,092 | $ | 103.96 | ||||||||||||||||||||||
$117.58 | 19,744 | 9.44 | $ | 117.58 | — | $ | 117.58 | ||||||||||||||||||||||
$117.97-$195.91
|
582,030 | 7.56 | $ | 137.18 | 347,840 | $ | 141.38 | ||||||||||||||||||||||
2,561,822 | 6.09 | $ | 85.59 | 1,611,830 | $ | 76.05 |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Risk-free interest rate |
0.2%-1.4%
|
1.4%-2.6%
|
2.7%-3.0%
|
|||||||||||||||||
Expected volatility |
47%-71%
|
40%-49%
|
33%-36%
|
|||||||||||||||||
Expected term |
4.7 to 5.1 years
|
4.6 to 5.9 years
|
5.1 to 5.8 years
|
|||||||||||||||||
Shares |
Weighted-Average
Grant Date Fair
Value
|
||||||||||
Outstanding at January 1, 2018 | 133,294 | $ | 91.60 | ||||||||
Granted | 62,133 | $ | 169.92 | ||||||||
Vested | (61,989) | $ | 86.19 | ||||||||
Forfeited | (1,165) | $ | 125.16 | ||||||||
Outstanding at December 31, 2018 | 132,273 | $ | 130.63 | ||||||||
Granted | 118,498 | $ | 115.90 | ||||||||
Vested | (102,846) | $ | 121.55 | ||||||||
Forfeited | (666) | $ | 134.36 | ||||||||
Outstanding at December 31, 2019 | 147,259 | $ | 125.11 | ||||||||
Granted | 111,306 | $ | 89.73 | ||||||||
Vested | (52,363) | $ | 121.69 | ||||||||
Forfeited | — | $ | — | ||||||||
Outstanding at December 31, 2020 | 206,202 | $ | 106.88 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Current expense (benefit): | |||||||||||||||||
Federal | $ | 10,889 | $ | 89,471 | $ | — | |||||||||||
State | 589 | 3,103 | 424 | ||||||||||||||
Foreign | 23 | (66) | (158) | ||||||||||||||
11,501 | 92,508 | 266 | |||||||||||||||
Deferred expense (benefit): | |||||||||||||||||
Federal | (15,672) | 74,627 | 29,928 | ||||||||||||||
State | (3,382) | 202 | (185) | ||||||||||||||
$ | (7,553) | $ | 167,337 | $ | 30,009 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Tax at federal statutory rate | $ | (2,213) | $ | 167,294 | $ | 36,400 | |||||||||||
State, net of federal benefit | (1,456) | 2,466 | 1,635 | ||||||||||||||
Contingent liabilities | (278) | 18 | 948 | ||||||||||||||
Share-based compensation | (362) | (819) | (8,131) | ||||||||||||||
FDII | (1,652) | (402) | — | ||||||||||||||
Research and development credits | (699) | (879) | (2,758) | ||||||||||||||
Change in uncertain tax positions | (650) | 441 | 858 | ||||||||||||||
Rate change for changes in federal or state law | (173) | (210) | 178 | ||||||||||||||
Provision to return adjustments | (4,803) | (184) | (150) | ||||||||||||||
Foreign tax differential on income/loss of foreign subsidiaries | (3,839) | 57 | (14) | ||||||||||||||
Change in valuation allowance | (121,876) | (1,193) | (4,225) | ||||||||||||||
Sale of Vernalis R&D | 127,372 | — | — | ||||||||||||||
Expired NOLs and credits | — | — | 3,054 | ||||||||||||||
Change in derivatives | — | — | 615 | ||||||||||||||
Other | 3,076 | 748 | 1,599 | ||||||||||||||
$ | (7,553) | $ | 167,337 | $ | 30,009 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
(in thousands) | |||||||||||
Deferred tax assets: | |||||||||||
Net operating loss carryforwards | $ | 64,147 | $ | 150,727 | |||||||
Research credit carryforwards | 19,623 | 14,843 | |||||||||
Stock Compensation | 11,994 | 9,544 | |||||||||
Other | 13,120 | 10,602 | |||||||||
108,884 | 185,716 | ||||||||||
Valuation allowance for deferred tax assets | (24,858) | (141,338) | |||||||||
Net deferred tax assets | $ | 84,026 | $ | 44,378 | |||||||
Deferred tax liabilities: | |||||||||||
Identified intangibles | (119,381) | (40,768) | |||||||||
Other | (4,923) | (10,939) | |||||||||
Net deferred tax liabilities | $ | (124,304) | $ | (51,707) | |||||||
Deferred income taxes, net | $ | (40,278) | $ | (7,329) |
December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Balance at beginning of year | $ | 28,736 | $ | 30,289 | $ | 29,363 | |||||||||||
Additions based on tax positions related to the current year | 3,911 | 543 | 1,247 | ||||||||||||||
Additions for tax positions of prior years | 179 | — | 336 | ||||||||||||||
Reductions for tax positions of prior years | (955) | (2,096) | (657) | ||||||||||||||
Balance at end of year | $ | 31,871 | $ | 28,736 | $ | 30,289 |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
Item 9A. | Controls and Procedures |
Item 9B. | Other Information |
Item 10. | Directors, Executive Officers and Corporate Governance |
Item 11. | Executive Compensation |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Item 13. | Certain Relationships and Related Transactions, and Director Independence |
Item 14. | Principal Accountant Fees and Services |
Item 15. | Exhibits and Financial Statement Schedule |
Incorporated by Reference | ||||||||||||||||||||
Exhibit
Number
|
Description of Exhibit | Form | File Number | Date of Filing |
Exhibit
Number
|
Filed
Herewith
|
||||||||||||||
Rule 2.7 Announcement issued by Ligand Holdings UK Ltd., dated August 9, 2018 | 8-K | 001-33093 | August 9, 2018 | 2.1 | ||||||||||||||||
Asset Purchase Agreement, dated March 5, 2019, by and among Ligand Pharmaceuticals Incorporated and RPI Financial Trust | 8-K | 001-33093 | March 5, 2019 | 2.1 | ||||||||||||||||
Asset Purchase Agreement, dated February 11, 2020, (as amended on April 1, 2020), by and among Ligand Pharmaceuticals Incorporated, Icagen Inc., Icagen Corp., XRPro Sciences, Inc. and Caldera Discovery, Inc.
|
10-Q | 001-33093 | May 8, 2020 | 2.1 | ||||||||||||||||
Agreement and Plan of Merger, dated as of August 10, 2020, by and among Pfenex Inc., Ligand Pharmaceuticals Incorporated and Pelican Acquisition Sub, Inc.
|
8-K | 001-33093 | August 11, 2020 | 2.1 | ||||||||||||||||
Agreement and Plan of Merger, dated September 8, 2020, among Ligand Pharmaceuticals Incorporated, xCella Biosciences, Inc. and Eton Venture Services, Ltd. Co., as stockholders’ representative
|
8-K | 001-33093 | September 10, 2020 | 10.1 | ||||||||||||||||
Agreement and Plan of Merger, dated September 9, 2020, among Ligand Pharmaceuticals Incorporated, Taurus Biosciences, LLC and the other signatories listed therein
|
8-K | 001-33093 | September 10, 2020 | 10.2 | ||||||||||||||||
Agreement for the Sale and Purchase of the Entire Issued Share Capital of Vernalis (R&D) Limited, dated as of October 11, 2020, by and among Ligand Pharmaceuticals Incorporated, Vernalis Limited, HitGen UK Ltd and HitGen Inc. | 8-K | 001-33093 | October 13, 2020 | 2.1 | ||||||||||||||||
Amended and Restated Certificate of Incorporation of the Company. | S-4 | 333-58823 | July 9, 1998 | 3.1 | ||||||||||||||||
Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Company, dated June 14, 2000 | 10-K | 0-20720 | March 29, 2001 | 3.5 |
Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Company, dated June 30, 2004 | 10-Q | 0-20720 | August 5, 2004 | 3.6 | ||||||||||||||||
Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Company, dated November 17, 2010 | 8-K | 001-33093 | November 19, 2010 | 3.1 | ||||||||||||||||
Certificate of Amendment of the Amended and Restated Certification of Incorporation of the Company, dated June 19, 2018 | S-8 | 333-233130 | August 8, 2019 | 3.6 | ||||||||||||||||
Fourth Amended and Restated Bylaws of the Company | 8-K | 001-33093 | October 30, 2020 | 3.1 | ||||||||||||||||
Specimen stock certificate for shares of the common stock of the Company | 10-K | 001-33093 | March 1, 2018 | 4.1 | ||||||||||||||||
Indenture, dated as of May 22, 2018, between the Company and Wilmington Trust, National Association, as trustee, including the form of 0.75% Convertible Senior Notes due 2023 | 8-K | 001-33093 | May 22, 2018 | 4.1 | ||||||||||||||||
Description of Registered Securities | X | |||||||||||||||||||
2002 Stock Incentive Plan (as amended and restated effective December 15, 2020) | X | |||||||||||||||||||
2002 Employee Stock Purchase Plan (as amended and restated effective June 6, 2019) | DEF | 001-33093 | April 24, 2019 | Appendix B | ||||||||||||||||
Form of Stock Option Grant Notice and Stock Option Agreement under the Company’s 2002 Stock Incentive Plan | 10-K | 001-33093 | February 24, 2014 | 10.5 | ||||||||||||||||
Form of Stock Issuance Agreement for non-employee directors under the Company’s 2002 Stock Incentive Plan | S-1 | 333-131029 | January 13, 2006 | 10.289 | ||||||||||||||||
Form of Restricted Stock Unit Grant Notice and Restricted Stock Unit Agreement under the Company’s 2002 Stock Incentive Plan | 10-K | 001-33093 | March 1, 2018 | 10.6 | ||||||||||||||||
Form of Restricted Stock Unit Grant Notice and Restricted Stock Unit Agreement under the Company’s 2002 Stock Incentive Plan - Performance-Based RSU Form | 10-K | 001-33093 | March 1, 2018 | 10.7 | ||||||||||||||||
Form of Executive Officer Change in Control Severance Agreement | 8-K | 001-33093 | August 22, 2007 | 10.1 | ||||||||||||||||
Amended and Restated Severance Plan, dated December 20, 2008 | 8-K | 001-33093 | December 24, 2008 | 10.2 | ||||||||||||||||
Amended and Restated Director Compensation and Stock Ownership Policy, effective March 28, 2019 | 10-K | 001-33093 | February 27, 2020 | 10.9 | ||||||||||||||||
TR Beta Contingent Value Rights Agreement, dated January 27, 2010, among the Company, Metabasis Therapeutics, Inc., David F. Hale and Mellon Investor Services LLC | 8-K | 001-33093 | January 28, 2010 | 10.2 | ||||||||||||||||
Glucagon Contingent Value Rights Agreement, dated January 27, 2010, among the Company, Metabasis Therapeutics, Inc., David F. Hale and Mellon Investor Services LLC | 8-K | 001-33093 | January 28, 2010 | 10.3 | ||||||||||||||||
General Contingent Value Rights Agreement, dated January 27, 2010, among the Company, Metabasis Therapeutics, Inc., David F. Hale and Mellon Investor Services LLC | 8-K | 001-33093 | January 28, 2010 | 10.4 | ||||||||||||||||
Amendment of General Contingent Value Rights Agreement, dated January 26, 2011, among the Company, Metabasis Therapeutics, Inc., David F. Hale and Mellon Investor Services LLC | 8-K | 001-33093 | January 31, 2011 | 10.1 | ||||||||||||||||
Amendment of General Contingent Value Rights Agreement dated May 20, 2014 among the Company, Metabasis Therapeutics, Inc., David F. Hale and Computershare Inc. | 8-K | 001-33093 | May 22, 2014 | 10.1 | ||||||||||||||||
Amendment of TR Beta Contingent Value Rights Agreement dated May 20, 2014 among the Company, Metabasis Therapeutics, Inc., David F. Hale and Computershare, Inc. | 8-K | 001-33093 | May 22, 2014 | 10.2 |
Letter Agreement, dated as of August 12, 2014, between Bank of America, N.A. and the Company regarding the Base Issuer Warrant Transaction | 8-K | 001-33093 | August 18, 2014 | 10.2 | ||||||||||||||||
Letter Agreement, dated as of August 12, 2014, between Deutsche Bank AG, London Branch and the Company regarding the Base Issuer Warrant Transaction | 8-K | 001-33093 | August 18, 2014 | 10.4 | ||||||||||||||||
Letter Agreement, dated as of August 14, 2014, between Bank of America, N.A. and the Company regarding the Additional Issuer Warrant Transaction | 8-K | 001-33093 | August 18, 2014 | 10.6 | ||||||||||||||||
Letter Agreement, dated as of August 14, 2014, between Deutsche Bank AG, London Branch and the Company regarding the Additional Issuer Warrant Transaction | 8-K | 001-33093 | August 18, 2014 | 10.8 | ||||||||||||||||
First Amendment to Master License Agreement dated September 6, 2014 among the Company, Metabasis Therapeutics, Inc. and Viking Therapeutics, Inc. | 10-Q | 001-33093 | October 31, 2014 | 10.9 | ||||||||||||||||
Second Amendment to Master License Agreement, dated April 8, 2015, among the Company, Metabasis Therapeutics, Inc. and Viking Therapeutics, Inc. | 10-Q | 001-33093 | August 5, 2015 | 10.1 | ||||||||||||||||
Development Funding and Royalties Agreement, dated December 13, 2018, by and between Ligand Pharmaceuticals Incorporated and Palvella Therapeutics, Inc. | 10-K | 001-33093 | February 28, 2019 | 10.48 | ||||||||||||||||
Sublicense Agreement between the Company, Pharmacopeia, Inc. and Retrophin LLC dated as of February 16, 2012, as amended through Amendment No. 5 to Sublicense Agreement, dated March 20, 2018. | 10-K | 001-33093 | February 27, 2020 | 10.42 | ||||||||||||||||
Lease, dated November 3, 2015, between the Company and 3911/3931 SVB, LLC | 8-K | 001-33093 | November 10, 2015 | 10.1 | ||||||||||||||||
Interest Purchase Agreement, dated May 3, 2016, between the Company and CorMatrix Cardiovascular, Inc. | 8-K/A | 001-33093 | May 9, 2016 | 10.1 | ||||||||||||||||
Amended and Restated Interest Purchase Agreement, dated May 31, 2017, between the Company and CorMatrix Cardiovascular, Inc. | 10-Q | 001-033093 | August 9, 2017 | 10.2 | ||||||||||||||||
Letter Agreement, dated as of May 17, 2018, between Barclays Capital Inc. and the Company regarding the Base Convertible Note Hedge Transaction | 8-K | 001-00393 | May 22, 2018 | 10.1 | ||||||||||||||||
Letter Agreement, dated as of May 17, 2018, between Barclays Capital Inc. and the Company regarding the Base Warrant Transaction | 8-K | 001-00393 | May 22, 2018 | 10.2 | ||||||||||||||||
Letter Agreement, dated as of May 17, 2018, between Deutsche Bank AG and the Company regarding the Base Convertible Note Hedge Transaction | 8-K | 001-00393 | May 22, 2018 | 10.3 | ||||||||||||||||
Letter Agreement, dated as of May 17, 2018, between Deutsche Bank AG and the Company regarding the Base Warrant Transaction | 8-K | 001-00393 | May 22, 2018 | 10.4 | ||||||||||||||||
Letter Agreement, dated as of May 17, 2018, between Goldman Sachs & Co. LLC and the Company regarding the Base Convertible Note Hedge Transaction | 8-K | 001-00393 | May 22, 2018 | 10.5 | ||||||||||||||||
Letter Agreement, dated as of May 17, 2018, between Goldman Sachs & Co. LLC and the Company regarding the Base Warrant Transaction | 8-K | 001-00393 | May 22, 2018 | 10.6 | ||||||||||||||||
Letter Agreement, dated as of May 18, 2018, between Barclays Capital Inc. and the Company regarding the Additional Convertible Note Hedge Transaction | 8-K | 001-00393 | May 22, 2018 | 10.7 | ||||||||||||||||
Letter Agreement, dated as of May 18, 2018, between Barclays Capital Inc. and the Company regarding the Additional Warrant Transaction | 8-K | 001-00393 | May 22, 2018 | 10.8 |
Letter Agreement, dated as of May 18, 2018, between Deutsche Bank AG and the Company regarding the Additional Convertible Note Hedge Transaction | 8-K | 001-00393 | May 22, 2018 | 10.9 | ||||||||||||||||
Letter Agreement, dated as of May 18, 2018, between Deutsche Bank AG and the Company regarding the Additional Warrant Transaction | 8-K | 001-00393 | May 22, 2018 | 10.10 | ||||||||||||||||
Letter Agreement, dated as of May 18, 2018, between Goldman Sachs & Co. LLC and the Company regarding the Additional Convertible Note Hedge Transaction | 8-K | 001-00393 | May 22, 2018 | 10.11 | ||||||||||||||||
Letter Agreement, dated as of May 18, 2018, between Goldman Sachs & Co. LLC and the Company regarding the Additional Warrant Transaction | 8-K | 001-00393 | May 22, 2018 | 10.12 | ||||||||||||||||
Platform License Agreement, dated March 23, 2015, by and between Open Monoclonal Technology, Inc. and WuXi AppTec Biopharmaceuticals Co., Ltd. | 10-Q | 001-33093 | August 8, 2018 | 10.13 | ||||||||||||||||
Amendment Number 1 to Platform License Agreement, dated June 11, 2017, by and between Open Monoclonal Technology, Inc. and WuXi Biologics (Hong Kong) Limited (as successor-in-interest to WuXi AppTec Biopharmaceuticals Co., Ltd.) | 10-Q | 001-33093 | August 8, 2018 | 10.14 | ||||||||||||||||
Amendment Number 2 to Platform License Agreement, dated June 25, 2018, by and between Open Monoclonal Technology, Inc. and WuXi Biologics Ireland Limited (as successor-in-interest to WuXi Biologics (Hong Kong) Limited). | 10-Q | 001-33093 | August 8, 2018 | 10.15 | ||||||||||||||||
Form of Indemnification Agreement between the Company and each of its directors | 10-K | 001-33093 | March 1, 2018 | 10.60 | ||||||||||||||||
Form of Indemnification Agreement between the Company and each of its officers | 10-K | 001-33093 | March 1, 2018 | 10.60 | ||||||||||||||||
Addendum, dated May 22, 2019, by and among Ligand Pharmaceuticals Incorporated, CyDex Pharmaceuticals, Inc., and Acrotech Biopharma LLC (as successor-in-interest to Spectrum Pharmaceuticals, Inc.), to that certain License Agreement between Ligand Pharmaceuticals Incorporated and Spectrum Pharmaceuticals, Inc., dated March 8, 2013 | 10-Q | 001-33093 | August 8, 2019 | 10.1 | ||||||||||||||||
Call Option Amendment Agreed, dated April 6, 2020, between the Registrant and Barclays Bank PLC | 10-Q | 001-33093 | May 8, 2020 | 10.1 | ||||||||||||||||
Call Option Amendment Agreed, dated April 6, 2020, between the Registrant and Deutsche Bank AG, London Branch | 10-Q | 001-33093 | May 8, 2020 | 10.2 | ||||||||||||||||
Call Option Amendment Agreed, dated April 6, 2020, between the Registrant and Goldman Sachs & Co. LLC | 10-Q | 001-33093 | May 8, 2020 | 10.3 | ||||||||||||||||
Call Option Amendment Agreed, dated January 28, 2021, between the Registrant and Barclays Bank PLC | X | |||||||||||||||||||
Call Option Amendment Agreed, dated January 28, 2021, between the Registrant and Deutsche Bank AG, London Branch | X | |||||||||||||||||||
Call Option Amendment Agreed, dated January 28, 2021, between the Registrant and Goldman Sachs & Co. LLC
|
X |
Contingent Value Rights Agreement, dated September 9, 2020, between Ligand Pharmaceuticals Incorporated and Vaughn Smider, as Members' Representative (regarding Taurus Biosciences, LLC acquisition) (incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on September 10, 2020) | 10-Q | 001-33093 | November 6, 2020 | 2.4 | ||||||||||||||||
Commercial License Agreement, dated September 9, 2020, between Taurus Biosciences, LLC and Minotaur Therapeutics, Inc. (incorporated by reference to Exhibit 10.4 to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on September 10, 2020) | 10-Q | 001-33093 | November 6, 2020 | 10.1 | ||||||||||||||||
Supply agreement, dated December 22, 2015, by and between Cydex Pharmaceuticals, Inc. and Gilead Sciences, Inc. | X | |||||||||||||||||||
Amendment to Supply Agreement, dated September 21, 2020, by and between Cydex Pharmaceuticals, Inc. and Gilead Sciences, Inc., which amends that certain Supply Agreement, dated December 2, 2015, by and between Cydex Pharmaceuticals, Inc. and Gilead Sciences, Inc. | 10-Q | 001-33093 | November 6, 2020 | 10.2 | ||||||||||||||||
Subsidiaries of the Company | X | |||||||||||||||||||
Consent of Independent Registered Public Accounting Firm | X | |||||||||||||||||||
Certification by Principal Executive Officer, Pursuant to Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||||||
Certification by Principal Financial Officer, Pursuant to Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||||||
Certifications by Principal Executive Officer and Principal Financial Officer, Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||||||
101 | The following financial information from our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, formatted in iXBRL (inline eXtensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statement of Comprehensive Income, (iv) Consolidated Statements of Stockholders' Equity, (v) Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements. | X | ||||||||||||||||||
104 | The cover page from the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, formatted in Inline XBRL and contained in Exhibit 101. | X |
Item 16. | Form 10-K Summary |
LIGAND PHARMACEUTICALS INCORPORATED | |||||
By: |
/S/ JOHN L. HIGGINS
|
||||
John L. Higgins, | |||||
Chief Executive Officer |
Signature | Title | Date | ||||||||||||
/s/ JOHN L. HIGGINS
|
Chief Executive Officer and Director (Principal Executive Officer) | February 24, 2021 | ||||||||||||
John L. Higgins | ||||||||||||||
/s/ MATTHEW KORENBERG | Executive Vice President, Finance and Chief Financial Officer (Principal Financial and Accounting Officer) | February 24, 2021 | ||||||||||||
Matthew Korenberg | ||||||||||||||
/s/ JOHN W. KOZARICH | Director and Chairman of the Board | February 24, 2021 | ||||||||||||
John W. Kozarich | ||||||||||||||
/s/ JASON M. ARYEH | Director | February 24, 2021 | ||||||||||||
Jason M. Aryeh | ||||||||||||||
/s/ SARAH BOYCE | Director | February 24, 2021 | ||||||||||||
Sarah Boyce | ||||||||||||||
/s/ TODD C. DAVIS | Director | February 24, 2021 | ||||||||||||
Todd C. Davis | ||||||||||||||
/s/ NANCY R. GRAY | Director | February 24, 2021 | ||||||||||||
Nancy R. Gray | ||||||||||||||
/s/ JOHN L. LAMATTINA | Director | February 24, 2021 | ||||||||||||
John L. LaMattina | ||||||||||||||
/s/ SUNIL PATEL | Director | February 24, 2021 | ||||||||||||
Sunil Patel | ||||||||||||||
/s/ STEPHEN L. SABBA | Director | February 24, 2021 | ||||||||||||
Stephen L. Sabba | ||||||||||||||
SECOND CALL OPTION AMENDMENT AGREEMENT
dated as of January 28, 2021
|
||
Between LIGAND PHARMACEUTICALS INCORPORATED and BARCLAYS BANK PLC |
Ligand Pharmaceuticals Incorporated
|
|||||||||||
By: | /s/ Matthew Korenberg | ||||||||||
Name: Matthew Korenberg
Title: EVP, CFO
|
SECOND CALL OPTION AMENDMENT AGREEMENT
dated as of January 28, 2021
|
||
Between LIGAND PHARMACEUTICALS INCORPORATED and DEUTSCHE BANK AG, LONDON BRANCH |
Ligand Pharmaceuticals Incorporated
|
|||||||||||
By:
|
/s/ Matthew Korenberg | ||||||||||
Name: Matthew Korenberg
Title: EVP, CFO
|
SECOND CALL OPTION AMENDMENT AGREEMENT
dated as of January 28, 2021
|
||
Between LIGAND PHARMACEUTICALS INCORPORATED and GOLDMAN SACHS & CO. LLC |
Ligand Pharmaceuticals Incorporated
|
|||||||||||
By:
|
/s/ Matthew Korenberg | ||||||||||
Name: Matthew Korenberg
Title: EVP, CFO
|
Days after Purchase Order | Minimum Monthly Delivery Quantity | ||||
[***] | [***] |
Name | Jurisdiction of Incorporation | |||||||
Ab Initio Biotherapeutics, Inc. | Delaware | |||||||
Allergan Ligand Retinoid Therapeutics, Inc. | Delaware | |||||||
Cita NeuroPharmaceuticals Inc. | Canada | |||||||
Crystal Bioscience, Inc. | California | |||||||
CyDex Pharmaceuticals, Inc. | Delaware | |||||||
Glycomed Incorporated | California | |||||||
Icagen, LLC | Delaware | |||||||
Ligand Biopharmaceuticals Incorporated | Delaware | |||||||
Ligand JVR, Inc. | Delaware | |||||||
Ligand Pharmaceuticals (Canada) Incorporated | Canada | |||||||
Ligand Pharmaceuticals International, Inc. | Delaware | |||||||
Ligand Pharmaceuticals UK Limited | United Kingdom | |||||||
Metabasis Therapeutics, Inc. | Delaware | |||||||
Neurogen Corporation | Delaware | |||||||
OMT I, Inc. | Delaware | |||||||
OMT II, Inc. | Delaware | |||||||
OMT, LLC | Delaware | |||||||
Open Monoclonal Technology, Inc. | Delaware | |||||||
Pfenex Inc. | Delaware | |||||||
Pharmacopeia, LLC | Delaware | |||||||
Seragen Incorporated | Delaware | |||||||
Seragen Technology, Inc. | Delaware | |||||||
Taurus Biosciences, LLC
|
Delaware | |||||||
Vernalis (Canada II) Inc. | Canada | |||||||
Vernalis (Canada) Inc. | Canada | |||||||
Vernalis Development Limited | England and Wales | |||||||
Vernalis Group Limited | England and Wales | |||||||
Vernalis plc | England and Wales | |||||||
Vernalis Research Limited | England and Wales | |||||||
Vernalis Therapeutics Inc. | Delaware | |||||||
xCella Biosciences, Inc.
|
Delaware |
1.
|
I have reviewed this Annual Report on Form 10-K of Ligand Pharmaceuticals Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ John L. Higgins
|
||
John L. Higgins
|
||
Chief Executive Officer
|
||
(Principal Executive Officer)
|
1.
|
I have reviewed this Annual Report on Form 10-K of Ligand Pharmaceuticals Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Matthew Korenberg
|
||
Matthew Korenberg
|
||
Executive Vice President, Finance and Chief Financial Officer
|
||
(Principal Financial Officer)
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and
|
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
||||||||||
Date:
|
February 24, 2021 |
/s/ John L. Higgins
|
|||||||||
John L. Higgins
Chief Executive Officer
(Principal Executive Officer)
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and
|
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|||||||||||||
Date:
|
February 24, 2021 |
/s/ Matthew Korenberg
|
||||||||||||
Matthew Korenberg
Executive Vice President, Finance and Chief Financial Officer
(Principal Financial Officer)
|